To get a secured loan in South Africa, you need to provide an asset of value as collateral.
This can range from an existing financial investment like bonds or stocks, a property to a tangible, movable item like a vehicle or a valuable painting.
At LoanAgainst, we specialise in loans against movable assets of value, owned by individuals and businesses.
Can any item of value be financed?
There are several variables that can impact the viability of an asset as loan collateral.
Typically, lenders only finance high-value items that are in good condition, have a proven record of ownership, and are easy to appraise against similar assets.
When the value of the asset is linked to provenance, it’s more difficult to establish its worth on the second-hand market.
Such items are also more difficult to sell. Demand is usually confined to a small group of potential buyers or collectors. That immediately increases the lender’s risk and makes the item less appealing.
Movable assets from luxury brands, like Rolex and Patek Philippe watches and designer handbags by Celine, Hermès and Chanel, are infinitely more attractive to finance providers.
So, too, are artworks by renowned emerging and established artists, luxury vehicles and antiques and collectibles that sell well at auctions.
When there is a consistently high demand for a particular asset or asset class, and the item offered as collateral is in full working order and has no blemishes or imperfections, it is almost certain to be financed at a fair rate.
What makes a personal asset suitable for securing finance?
Only assets that are currently not in use, or owners can do without, are suitable as loan collateral.
A second car or boat that is in dry dock for the season are ideal. Similarly, most people can do without a handbag, antique, painting or item of jewellery.
The title or record of ownership of the asset must be readily available, and in the name of the person applying for finance.
If the authenticity of the piece is provable, it is adequately insured when in storage and all the supporting documents are available, lenders are more likely to offer finance against it, based on the appraised value.
Personal assets our clients use to secure loans in South Africa
Cars and business vehicles
Good condition, low-mileage vehicles with full service and maintenance records are frequently used by individuals and businesses to secure financing.
Supercars, sports cars and vintage and collectible cars realise the highest loan-to-value percentages.
Luxury watches, jewellery or gold coins
Gold, silver and platinum jewellery embellished with precious gemstones unlocks finance commensurate with colour, carat, cut and purity.
Luxury watches by the likes of Rolex, Cartier and Audemars Piguet, along with Krugerrand, American Eagle and Canadian Gold Maple Leaf coins, are highly tradeable and readily accepted as loan security.
Antiques and art collections
LoanAgainst offers finance against antique furniture, cameras, guns and Persian and oriental rugs and carpets.
Other assets of value
Other assets used to secure finance through LoanAgainst range from superyachts and fine whiskey or wine to designer handbags and, on occasion, high-value running shoes.
How to get a secured loan in South Africa
If you own a high-value possession, you can apply for finance online now. We’ll do a quick remote appraisal of the item based on recent sales and market demand, and make a fair offer right away.
That’s followed by a physical appraisal at LoanAgainst branch before the agreement is signed, the item handed over for safe-keeping and the funds disbursed into your account – all within 24 hours.
