What is most advantageous to use as collateral to obtain a large sum?

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      When you need a large sum and a regular loan is not approved, apply for a loan secured by collateral. The bank will require collateral, for example real estate or a car, to reduce its risks. And the client will receive more favorable terms and more lenient requirements.

      Apartment, apartments, or a room

      The most reliable collateral is residential real estate. Banks readily lend significant sums against it for long terms. The law allows even primary residences to be used as collateral, but you must understand that the property will be taken if you fall behind on payments.

      The property must be in good condition, free of encumbrances and legal problems. Buildings in disrepair, units marked for resettlement, and those slated for demolition are not suitable.

      Townhouse

      Rates and loan amounts are usually comparable to those for an urban apartment, but much depends on the region and the developer. The readiness of the house, availability of a registered land plot and utility connections are important. You can use the house as collateral if the land beneath it is also in your ownership.

      Country properties and plots

      Their value depends on location, utilities and demand in the area. Terms are stricter and amounts smaller. The bank assesses the house's area, number of floors, remoteness of the plot and the possibility of a quick sale. You can pledge a house with land or just a plot.

      Commercial real estate

      Offices, shops and warehouses also interest financial institutions. But you must own them as a private individual. The bank analyzes location, the purpose of the premises, demand and rental potential.

      Garages and other non-residential premises

      You will have to accept a smaller amount: a loan secured by non-residential property is usually less than one secured by an apartment. Banks evaluate such objects more strictly — they are less liquid — and impose more conditions. But if you have no other assets, it is better than a refusal.

      Car

      The bank will assess the car's age, mileage and condition. But it will approve a smaller amount than for a property, since a car depreciates faster. You will be able to use the car, but you will not be able to sell or gift it until you repay the debt.

      Share in real estate

      The loan amount is lower than for a whole apartment, and the rate is higher. For a share to be accepted as collateral, the other owners must act as co-borrowers. As a result, the collateral effectively covers the entire property.

      The size of a loan secured by collateral depends on the price of the asset. Usually you can get from half to 80% of the market value. But if the bank understands that they will not be able to quickly sell your property if necessary, you will have to forget about pledging it.

      Advertisement. PJSC "Sovcombank". TIN 4401116480 sovcombank.ru

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