A personal loan is considered “unsecure” when the assets you choose to purchase with it are not held as “security” or “collateral” if you fail to pay the loan. This could be a loan for a holiday, to consolidate debts, student loans and other small amounts where using a credit card isn’t appropriate.
When it comes to motorhome and caravan finance we would encourage you to take out a secured caravan loan rather than an unsecured personal loan. An unsecured personal loan is a riskier loan so it may attract a slightly higher interest rate and is sometimes difficult to obtain.
With a secured loan the caravan or motorhome is in your name and the loan is secured against the vehicle. Your interest rate will be fixed making the payments the same amount over the term of the loan which makes it easier to work into the budget.
For more information about our finance options contact us at Aussie Leisure Loans today.