Mortgage loans for consumption and important notes

Mortgage consumer loans with secured assets have been of interest to many customers in recent times. So form consumer loans What is this? We invite you to learn more details in the article below!

1. When do you need a mortgage for consumption purposes?

Mortgage consumer loans are a form of banks that lend customers a large source of capital to serve necessary and urgent consumption needs at the present time, but on the condition that the customer must have collateral assets (secured assets). mortgage).

 Thus, you can choose this loan package when:

• Need to buy a car, buy real estate, repair a house, decorate the interior, get medical treatment, travel... and need a large amount of money.
• Have collateral according to bank regulations.

2. What assets are used as collateral for consumer loans?

The reason for having collateral when lending is because the bank wants to ensure that customers have the ability to repay, minimizing the risk of the loan. In case the customer fails to repay the loan, the bank can seize and sell the collateral to offset the unpaid portion of the loan.

Accordingly, the conditions to become collateral are:

• Assets used for mortgaged consumer loans must be owned by the guarantor, except in cases where the asset is mortgaged and ownership is reserved.
• Customers can use existing security assets or future security assets.
• The value of the loan with collateral may be equal to or less than the value of the secured obligation.

Some common collateral assets for mortgage consumer loan packages include cars, houses, savings deposits at banks, property rights (right to receive insurance, right to contribute capital to business, profits and rights arising from mortgaged assets...), valuable papers (bonds, stocks, money certificates deposit...depending on each bank's regulations)...

3. Answers to frequently asked questions when taking out a mortgage loan for consumption

In the process of learning about secured loans, many customers also have the following questions:

3.1 Can I use another person's property to mortgage/mortgage?

Depending on the consumer mortgage product and each bank's regulations, you can use a third party's assets (customer's relatives) to pledge/mortgage the loan. However, there must be the consent of a third party and a power of attorney confirmed by a notary office. To ensure customers' rights, Hong Leong Bank currently does not accept mortgages of other people's assets, even with power of attorney. 

3.2 Can one asset be used as collateral for consumer loans at multiple banks?

The answer is no. An asset can only be used as security at a single bank at the time of establishing a loan transaction. However, this collateral can be used for many different loans at the same time, if the value of the collateral is greater than the total value of the loans at the time of the transaction.

 For example: Customers can bring a red book as collateral for a consumer loan at the Bank. However, at the time of mortgage, you cannot use the red book to borrow from another bank unless you have paid off all mortgage loans at the Bank.