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

To get a secured loan in Botswana, you provide an asset of value as collateral. This is what defines the loan as “secured”. 

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

The amount offered as an asset-based loan is typically a percentage of the market value of the asset.

Can all personal assets of value be collateral?

No, you can’t use all assets as collateral for loans. 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.

Lenders will accept only assets they know will cover the cost of the loans. Otherwise, they risk losing money if borrowers don’t repay their loans.

For example, an asset may be valuable to collectors but have little resale value. This type of asset is unlikely to be attractive to an asset-based lender, who could struggle to sell it if necessary.

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

Some assets, like gold, silver and precious gems, always have value. It’s easy to assess the value of these items, and you can generally sell them quickly if you choose.

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.

In addition, some items have monetary value but might not sell easily or quickly because they’re extremely expensive. Examples are jets and superyachts.

To determine whether an asset can be used to secure a loan, consider the demand for the item. Cars, for example, are quicker and easier to sell than fine art. Also consider whether the item is of sufficient value. You can get an idea of this by checking sale offers for comparable items online and by having the item independently appraised.

Movable items commonly used to get a secured loan 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. The value of these types of assets will depend on objective factors like brand, age, and condition. It may also be influenced by more variable factors, like fluctuations in current market demand.

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.