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What is a Caveat Loan and How Can it Benefit You

Nov 12, 2017
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The definition of a caveat loan is one that involves a caveat document, which can be lodged with the government records of land ownership. The document states that this property is being used as collateral for a loan, and as it is a very secure way of lending, interest rates are low. Typically, a caveat loan is taken out for a very short time, ranging anywhere from 1 -24 months, with some loans having a term of just a few days, and if you are a property owner with less than 95% mortgaged, this is an ideal way to borrow short term.

Stable Income

This is one area that the lender will look at, and providing your outgoings are not too high, the application will be approved. If you are an employee, your payslips would likely suffice, while those who are self-employed do not have to produce any evidence of income. If you live in Australia, and are looking for the best caveat loan, check out My Cash Finance – fast service guaranteed, and with online applications, things take hours, not days, to complete.

Vehicle Ownership

If you are the owner of a vehicle, this can help you to obtain a caveat loan, as it will be used as collateral, which is another positive indicator for the lender. The finance industry is all about risk, and when a borrower is prepared to use their car (which is not financed) as security, this makes for a more favourable lending environment.

Flexible Repayment Packages

Every person’s financial affairs are unique, and therefore it is best to tailor the repayments to suit. Some people prefer a fixed monthly sum, which is automatically paid by direct debit, while others are looking for something flexible that allows for early repayment or a temporary reduction. Online loan providers can tailor a loan to perfectly suit the customer, and with a caveat loan, you will have the money within hours rather than days.

Business Purposes

Your growing business might need expansion, and a caveat loan over say 12 months would be just the solution. Due to the low risk of a caveat loan, rates are very low when compared to an unsecured business loan, saving you money while providing the solution. You might be thinking of a new business venture, and if you expect the business to do well, a short term caveat loan would give you the essential funding, and with very fast approval, your company will not suffer due to lack of funds.

Bridging Solutions

There could be many reasons why a person needs to borrow money, it could be a family wedding, or even that once in a lifetime round the world cruise that you promised your partner, but with a caveat loan, you can be sure that, should you require funding, it is only a few hours away. Some people use the online pre-approval form, which is not binding, and once you have received pre-approval, you can relax and wait until you actually require the money before applying.

Many homeowners take advantage of a caveat loan, and with the right online provider, it couldn’t be any easier.

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