A type of loan that is not well known to many is the credit with liquid guarantee. He is told in this way because the applicant will use certain money in his possession as a guarantee.
For example, if you have an amount of savings in a bank, a term deposit or even mutual funds, these can work as the guarantee to get the loan you need.
This type of loans is to facilitate the evaluation process
The objective of this type of loans is to facilitate the evaluation process and to demonstrate that the applicant has an available amount of cash to use to cancel the loan; that is, it less the risk of default, making them more likely to be approved.
And in many cases, you are not required to justify your income, nor do they place an age limit, which means that older people with certain savings can also access the money.
The requirements and conditions vary depending on the bank
Something that you should keep in mind is that the requirements and conditions vary depending on the bank you use. Some have a policy that the loan must be granted in the same currency in which the Term Deposit or bank certificate is located, while for others it is indifferent.
Likewise, it does not mean that by having a DPF, you can request the amount you want and it will be approved, since the amount that the bank can lend you will depend on the credit rating they make of your profile.
Some credit institutions only accept Fixed Term Deposits
Finally, keep in mind that some credit institutions only accept Fixed Term Deposits as a liquid guarantee, and the requirement is that they be from that entity.
As always, it is best to compare the conditions of the entities that interest you, so that you can see which one offers the best conditions, rates and gives you more benefits.