How long does it take to process a secured loan


A secured loan is a loan secured against one of your assets, in most cases your home.

Secured loans have lower interest rates than unsecured loans because the lender demands an asset as collateral in case you fail to repay the loan.

Secured loans are mainly used to borrow huge sums of money, usually over £ 20,000, although one can borrow from as little as £ 3,000. After applying for a secured loan, you may be wondering how long will it take for the loan to be processed.

The time required varies from lender to lender, but it also depends on how you complete the required forms and whether there are potential issues.

Since a secured loan is primarily attached to a property, the additional documents required will slow down the application process slightly.

The whole process of applying for a secured loan will begin with filling out the application forms, appraising your assets, confirming the value of your property, signing the contracts and finally disbursing the money on your account.

After receiving a secured loan application form, a lender will base their decision on just two areas, your property and you. If he can approve the value of your income and your assets, then you will get a loan at a very attractive rate.

After completing the loan application form, you will be given a quote, which will be subject to validation and confirmation. You can get a free quote from, a new UK brokerage service that recently grabbed the headlines for its unique ability to provide loan quotes from the ‘cheapest lender likely to say yes’.

If you are happy with the quotes provided, your credit report will be assessed and you will need to provide proof of income and confirm that your assets will cover the loan.

Lenders will give you 16 days to consider your loan from the day you receive a copy of your credit agreement to go through. During these 16 days, your lender will not contact you, which means that you will not be harassed in making decisions.

However, you can get clarification from them on everything related to the loan. Halfway through your 16 days, you will be given a credit agreement form to sign, and once the 16 days are up, you will need to make a decision.

Once your lender has all the required information and is satisfied, they will call you directly and ask you some general security questions. These questions are designed to protect you, the borrower, against fraud and blackmail.

Assuming the appeal is successful, your lender will then deliver the fully completed file to the credit committee where the file is signed by different administrators.

Typically, the entire loan application process, from the review period to receipt of funds, can take three to six weeks, depending on your lender.

Before you pay you a loan, your lender will contact you to authenticate all the details and plan how you will receive the money.

Most lenders prefer to pay the funds by direct deposit to your bank account, although some won’t mind paying you by check if you ask.

Most lenders give priority to processing secured loans over unsecured loans. The acceptable amount is highly dependent on an individual and the value of their assets, to ensure that whatever you ask for is what you earn and own.


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