What Items You Can Use to Get a Secured Loan in Botswana

To get a secured loan in Botswana, you must provide an asset of value as collateral.

This can range from an existing financial investment to a property or a tangible, personal item like a vehicle or valuable painting.

Can all personal assets of value be collateral?

No, not all assets can be used as collateral for a loan. The asset secures the loan and must have enough value and resale potential to cover the loan amount if the borrower is unable to repay loan.

The lender will only accept assets that it knows will cover the cost of the loan. If not, the lender risks losing money if the borrower doesn’t repay the loan.

For this reason, an asset that’s valuable to collectors but has no resale value is less attractive to an asset-based lender, who could struggle to sell it if necessary.

The amount lent is a percentage of the value of the asset. Not all assets have enough value to make a loan worthwhile.

What determines if you can use an item to secure a loan?

Some assets always have value, like gold, silver and precious gems. It’s easy to assess the value of these items, and they sell quickly.

Other assets are only valuable if they’re in demand or have value to a collector. This includes items like vintage wines and luxury handbags.

Other items have monetary value but might not sell easily or quickly because they’re extremely expensive, such as jets and superyachts.

To determine whether an asset can be used to secure a loan, consider the demand for the item. Cars, for example, sell quicker and easier than fine art. Ensure you know the value of the item by having it appraised.

Movable items commonly used to get secured loans in Botswana

These are some of the items most used as collateral to secure loans in Botswana.

Cars and business vehicles

A personal or business car that’s in good condition and fully paid off is a popular asset to use for an asset-based loan. Other vehicles can be used, including motorcycles, trucks, yachts and even caravans.

Luxury watches, jewellery and gold coins

Luxury watches and jewellery made from precious metals or gems are high-value items that can easily be used to get a loan. Gold coins and bullion are also popular choices and are easily valued.

Antiques and art collections

Antiques and art are accepted slightly less often as collateral. However, if the items have been independently appraised by an auction house or expert, you should have no trouble using them to secure a loan.

Other assets of value

Other items that are sometimes accepted include fine whiskey and wine, designer handbags and even high-value sneakers on occasion. Using these items will depend on the brand, age, and condition.

How to get a secured loan in Botswana

At Lamna, we offer loans against a range of assets, including cars, trucks, luxury watches, art, and antiques.

Our loans are discreet, fast and don’t involve complicated paperwork. At Lamna, you’re guaranteed:

• fair and transparent loan terms
• accredited and legally compliant loans
• no hidden fees or early settlement penalties
• vehicles insured and stored at our cost
• zero impact on your credit rating.

We have branches in Gaborone, across South Africa and in the UK. Apply online now to get a specialised asset-based loan from a leader in the industry.

Contact us to learn more about items you can use to get a secured loan in Botswana or apply online now to start the process.