Self employed secured loans are a very easy and popular way to borrow money for the persons who run their own enterprise or are partners in any firm and they are willing to offer their house as collateral against the amount. The lenders are always ready to invest in this plan as in this case you guarantee your home or other valuable property as collateral for the debt hence risk factor here is very less. The money provided can be used for any purpose like home maintenance, debt consolidation, car purchase, exotic holiday etc.

The interest rate in self employed secured loan is relatively lower as compared to other loans. The loan money is according to the guaranteed property hence different for different case. Self employed secured loans can be taken for a relatively longer period of time and is very flexible in its terms and conditions, though flexibility parameters and extents vary from lender to lender. In case of contracted job you can get self employed loan, but cases are different for traditionally employed people and job starters.

Self Employed Loans-terms and conditions

The basic and foremost requirement for this is that you should be an owner of any home or other mortgage to put it as guarantee. The self employed loans are lent to all the applicants who are at a minimum age of 18 years and no maximum age limit is specified. The variable interest rates applicable for this generally vary from 7.7% to 18.3%.the time period for which the loan is granted varies from 3 to 25 years. It depends on the negotiating aptitude of borrower and flexibility from the lender itself. In case of self employed secured loans if you have a contracted traditional job, the extra condition what you have to prove is that any employer has renewed the contract or show them the annual or two years period renewal pattern.

Again if you are a job starter many other conditions are also taken In account like your experience in the field you are working in, your market credit history etc. as any lender would like to make sure that you are employable, though you are putting a guarantee as well as the sole thing what they want is their repayments. Few of them can even ask for your salary and profit. Generally one is asked for their three year accounts; if one cannot manage this a letter by your accountant will also work. But most of these conditions are variable and differ from lender to lender.

For self employed secured loans .if you cannot make an income proof with accounts or self assessment documents a self declaration loan is also offered, in self declaration you have to simply produce a letter head, business card, CIS card or other means specified by the lender. For self employment secured loans one can opt for self certification loan also. Here you have to only certify you’re earning and not prove it but a drawback here is that the interest rate here is a bit higher, and hence it will not permit you to have a high amount loan.

Proper budgeting should be done taking care of all the earnings and expenses. As in case of non repayment or delayed repayment of debts the home or property assured for taking self employed secured loan can be possessed by the lender.