How to Prove Collateral For Personal Loans From a Bank
Filed under Collateral Loans
If you are seeking a personal loan from a bank, the bank may want collateral, or security, to ensure the loan is repaid in full. This is a normal function of banking and you should not feel offended if the bank asks what type of collateral you have.
So how do you prove to your bank the type of collateral you have? In most cases, it can be easy. First, you will begin by completing a financial statement with your bank. In this document, you will list your income, your debts and your assets, or property you own. The property is what the bank is interested in as collateral. But the financial statement merely discloses your property, it does not prove you own the property listed.
How you prove you own this property depends on the type of property owned.
Proving Your Collateral
The following is a list of valuable personal items that can be used as collateral for financial lending and loans. There are other items that banks will and will not consider as acceptable collateral but use this as a collateral guideline.
Real Estate
This form of property is one of the easiest forms of ownership to prove. You will have a deed to the property. Since real estate transactions, including real estate loans, are more complex than most loans. A bank may require title insurance, which will list ownership of the property, along with all liens outstanding on the property.
Vehicles
For vehicles such as cars, trucks, SUV’s, motorcycles, boats and other vehicles, you will have a Certificate of Title issued by your state’s Department of Motor Vehicles. It will list the Vehicle Identification Number (VIN) for the property, together with your name and address. It will also show if any other entity has a lien on the property.
Note that a bank might not accept a registration statement as proof of ownership. The reason is that registration statements often do not list lien holders on the vehicle. Be sure to provide the Certificate of Title itself. If you have lost it, contact your Department of Motor Vehicles for a replacement title. There may be a fee involved, but you may not be able to obtain your personal loan otherwise.
Stocks and Securities
If you happen to own stocks or marketable securities and are offering them as collateral, obtain the stock certificates. If they are held by a brokerage, you might be able to allow the bank permission to contact the brokerage for proof of ownership.
Gold, Silver and Jewelry
If a bank is willing to take these items as collateral, possession of the precious metals or jewelry is the form of proof they will most likely require. They may also require receipts for purchase, to prove you actually own them. In addition, they may require that they maintain possession of these items until the loan is repaid. They will also require some form of documentation that authenticates the value of these precious metals and jewelry. Remember that not all personal possessions can be used as collateral for a bank loan. The collateral must be valuable for the bank.
Accounts Receivable
If you own your own business, and your bank is willing, you may be able to pledge your accounts receivable, or the money owed to you, as collateral. Proof is a little more difficult, and the extent of proof varies from bank to bank. At minimum, the bank will require a listing of who owes money to you, the amount owed, and for how long the amount has been owed. The bank may require an acknowledgment from your customer demonstrating that the amount is, in fact, owed.
This list is not meant to be exclusive, as a bank may accept other forms of collateral. But the list is some of the more common types of collateral used, and how to prove to the bank that the property is owned by you.
Tags: Proving Your Collateral
How to Get $50000 Personal Loans With Collateral
Filed under Collateral Loans, Loans
If you want to learn how to get approved for $50000, read the following information. When looking for a large personal loan, you should automatically expect to post something of value as collateral. Finding a loan of $50000 without collateral will be especially tough. Do not expect to get a $50000 loan with bad credit, unless you have good credit, a long working relationship and history with the bank, and the financial reports to back up your wealth, do not bother. The lending market is very tight, and due to recent events surrounding the economy, lending guidelines are very strict. However, if you have something comparable in collateral value, you will be able to get a personal loan using that item as security.
Which Collateral is Valuable?
What makes an object valuable is its resale value. Many objects we consider valuable have little or no resale market value, even if they are collector’s items. Getting a personal loan through a bank in the amount of $50000 has this requirement. This is the best way to get a personal loan for $50000. Banks are looking for, and only accept, items that can be easily resold in the event that the loan enters default status.
Generally, when considering large personal loans with collateral, the most common items used for collateral are a home or property that has that much equity available in it, stocks and bonds valued at least 20% higher than the loan amount requested and on occasion, a title for a paid off high end automobile. Depending on the bank you work with, you might get a loan using your home as collateral without income proof. You may still be required to show income but it will not be the determining factor to get that loan. Documented and appraised valuable artwork and jewelry sometimes are allowed as collateral, but that is up to the discretion of the bank. With jewelry, artwork and antiques as collateral, find a reputable dealer that has worked with the bank prior and get a certified statement of value from them. You can save the bank all the legwork of appraising and speed up how quickly you get personal loans.
$50000 Personal Loan Documentation
When you approach the bank for a personal loan of this nature you should have the evidence of collateral and all accompanying documentation to prove you are the owner of this item and can legally use it for collateral. This is how you get $50000 or any other similar amounts. With the proper $50000 personal loan documentation, you can demonstrate your ability to repay. You should also have available proof of current income, proof of residency and photo identification ready. The bank will want to know everything about you prior to making the loan.
Make sure your credit history is in good shape before going to the bank. By cleaning up any negative marks or bad entries on your report, you will boost your credit scores and qualify for lower interest rates.
Finally, when you apply for a collateralized loan, be prepared for it to take some time to process. You will not be approved for or receive a loan of this nature instantly. On average it will take about two days to get approved.
If you are in great need of that money, payday loan might be a quick solution to your problems until you hear back from the banks on whether or not your $50000 personal loan was granted approval. Start here to get your money.
Tags: $50000 Collateral Loans