Have a valuable asset? You can leverage it to get money if faced with a financial emergency. Simply pledge it as a security and get money for it through an ICBC Personal Pledged Loan. It’s convenient, fast, and offers a high borrowing limit.
High Borrowing Amount, Low Interest Rate: Can This Loan Prove to Be a Good Choice?
Once you know what the loan offers, you may consider it to be a sensible choice. Here are some features and benefits worth noticing:
High borrowing limit: You can get up to 90% of the value of your pledged asset through this loan.
Flexible tenure: The loan period can go up to 3 years.
Hassle-free application process: The application process is simple and easy-to-understand.
Affordable interest charges: Interest rates on your loan will be competitive. That means, you can probably save significantly on your loan repayments.
Fast turnaround: Usually, the bank will approve your loan application in a fast and efficient manner. This may, however, be subject to conditions.
No fee for application: The bank currently charges no administrative/processing fee for processing and approving a loan.
Make Yourself Aware of the Relevant Loan Fees
The bank charges competitive interest rates. Does it also charge competitive fees for various account transactions? The fact that the bank offers a complete waiver on application charges, might be able to give you a hint. However, be mentally prepared to pay other service-related and administrative charges. Talk to the bank to learn in detail about the charges that apply.
Adopt Some Caution Before Applying for an ICBC Loan. Here Are Some Points to Consider
Deliberate on the following points before you submit your loan application:
- ICBC may have restrictions on the nature and type of assets that can be pledged. Not all valuable items may be accepted as security.
- The value of your pledged asset will be ascertained as per the practices and parameters of the bank. The value, as evaluated by the bank, could be different from your assessment.
- You may not be able to stretch the loan period beyond 3 years. This may not be the longest loan tenure available in the market. This might put the loan at a slight disadvantage vis-à-vis similar products from ICBC’s competitors.
- You may not be able to apply for this loan if you aren’t holding a current account with ICBC.
- Meeting the eligibility conditions set by the bank for this secured loan may not guarantee automatic approval.
Do You Satisfy the Loan Prerequisites? Read on to Find Out
You may apply for this personal loan only if you satisfy the following:
- You’re aged 18 years at least.
- You have a current account with ICBC.
You’ll also have to provide the following documents to ensure that your loan gets processed:
- Provide a copy of your IC or passport, whichever is relevant.
- Provide a copy of a valid ID of the loan guarantor. This would be relevant in case the security pledged belongs to a third party.
- Provide a duly signed copy of the application form.
- To use an asset owned by a third party as a collateral for your loan, you’ll have to get their written consent.
- Give a reason for taking this loan, in writing.
- Provide proof of ownership of an asset you want to pledge.
Want to Apply? Here’s How You Can Proceed
To submit your loan application, be present at the bank, in person. Alternative modes of application may not be available. It’s true that not everyone facing a financial crisis will be lucky enough to own a pledge-worthy asset or have a benevolent backer. This fact does indicate that obtaining a Pledged Personal Loan from ICBC may not always be easy.
However, if you need money and if you have an asset the bank accepts as collateral, you may want to consider this loan. Come to think of it, you may have only two choices to deal with an imminent financial crisis:
- Pledge an asset and get money against it through this loan. Repay over time. As interest rates are low, chances of default could be relatively low.
- Sell/liquidate your asset to meet your short-term objective. This can, however, mean a huge loss in the long run. That’s because liquidating assets prematurely usually leads to notional losses.
Which sounds like a better plan? Go ahead and take your pick.