Monthly Archives: February 2016

What Is A Secured Loan?

A secured loan is a sum of money, which comes attached with collateral. Under this loan, a borrower has to pledge some asset, for example; a property or a car, as collateral for the loan. The collateral (pledged asset) is a type of security or surety for the loan and the bank or loan providing company can collect it if the borrower defaults or misses the loan payment.

 

One of the most important things about this type of loan is that it is offered at a lower interest rate because the bank here remains at a lower risk, thanks to the collateral or pledged asset surrendered at the time of taking the loan. Besides, a secured loan also works as the best way to build credit score if you go through a reputable lender like a credit union or a bank.

 

How does it work?

 

Before providing you with the loan amount, the bank will undertake a pledge in the form of an assurance over one or more of your assets. This is the asset that is actually purchased using the funds from the loan, thereby, securing the legal right to take possession in the future if you happen to default the same.

 

Types:

 

Following are some of the types of secured loans offered mostly by the banks these days:

 

1)  Title loans

 

A title loan, also known as title pawn in some states, is a type of secured loan. This is considered to be the most convenient and quickest way for people who own their motorcycle or car to get cash. It is very simple to get a title loan or title pawn. As long as you own your motorcycle or car, and possess its lien-free title, you can use it as collateral to get the cash you need.

Under this loan, a borrower has to use his/her vehicle as collateral. The vehicle is returned as soon as the loan is repaid. While you can find an end number of title loan providing banks all over the world, the providers of title loans in Arlington have really carved a niche among the Arlington-based loan-seekers by virtue of their hassle-free mode of secured loan.

 

2)  Mortgages

 

Mortgages are similar to title loans, but under this, the bank agrees to lend money in exchange for taking the debtor’s property.

 

3)  Certificate of deposit

 

CD (certificate of deposit), a form of savings account, can also be used to obtain loans. Under this, you can build a credit history with the bank and proceed with the same.

 

Advantages Of A Secured Loan

 

Like mentioned previously, secured loans are frequently used by some to build a successful credit score. Not only this, but there are also many other benefits of the secured loans:

 

– There is generally less risk involved with the type of lending method.

– Interest rates are comparatively lower than other types of loans.

– They are easier to get without having to go through a tedious process.

 

Pointers to keep in mind

 

While choosing a secured loan, there are certain key things that should be kept in mind, for example;

 

1)  Interest rates

 

The loan should provide a reduced interest rate and amounts that can be switched easily when it comes to making the payments.

 

2)  Flexibility

 

Flexibility in terms of payment periods and other similar additional clauses should be assessed before choosing the right loan.

 

3)  Financial aspect

 

Consider your personal financial aspect before you get any loan. You should assess how the loan will affect your total debt instead of thinking only in short term basis. Create a budget and stick to it.

 

Secured loans are primarily offered by all banking societies, but it is essential to consider all possibilities before getting into one.

General Motors Arlington Plant

 

general motors building

Everyday from sunrise until sundown and in between shifts of workers work inside and outside of the General Motors Plant in Arlington.  An expansion plan has started for the plant priced at the amount of $1.4 billion. Construction crews are working on the west end of the motor plant prepping the new body shop. This project is going to clock in at three years.

Plant manager Juan Carlos Jiminez has said they do not want to impact customers with a shut down so that is why work is still going on inside the plant, The downtime could have saved them some extra money but at the cost of not producing enough for their customers. This allows for the construction expansion and inside assembly work to be done at the same time inside of the plant.

General Motor’s plant in Arlington employs around 4,000 people. They build the Chevrolet Tahoe and Suburban, Cadillac Escalades and GMC’s Yukons. GM is a major fixture in this part of the SUV market as they have a share of around 75 percent of the market, making this a profitable and important plant.

Strong sales of those trucks have allowed GM to dominate the full-size SUV market, commanding about 75 percent of the highly profitable segment. Demand for their product is evident in the amount of work being put in at the factory. Autoworkers at the plant work some six days a week and can take some sort of overtime on Saturdays and there is even a few times workers can volunteer to work overtime on Sundays.

The plant is fully efficient cranking out as many SUV units as it can because of the high demand that is staying quite strong. As gas prices are trending at around $2 per gallon this comes as no surprise that SUVs and trucks are accounting for a large amount of sales in the United States.

It is expected to build about 300,000 vehicles this year. Arlington’s SUVS are some of the most profitable vehicles and average profits of about $10,000 per each vehicle created.

Details of the Expansion

GM has stayed tight lipped on any exact specifications for the new expansion but it will include paint and body shops along with some high tech equipment.  The new expansion will add around 1 million square feet. Inside of it will include automated robotics that currently weld together the SUVS and send the cars through the conveyor belts.

Others have remarked that the new additions will catch up with the future. The demand for these products spreads throughout the world and they will need to have the necessary equipment to deal with this.  GM is an industry leader right now in this section and it only makes sense for them to take full advantage of this opportunity by expanding. They will be able to meet demands in other countries and increased need in the United States. The expansion will come along great as they continue working inside at Arlington.