What is the difference between a secured and an unsecured loan?

Answers:4   |   LastUpdateAt:2012-10-23 18:29:03  

Asked at 2012-09-07 21:34:02
And what are the advantages / disadvantages of each?
Answer1LynneseAnswered at 2012-09-11 22:12:05
With a secured loan you have to put some kind of security to these , like a house or a car . With an unsecured loan is not. Unsecured loans are understandable for small loans . But it depends on how the bank will lend the money and if they want security . MedlinePlus If you can not pay your secured loan , you may end up losing their security - the bank will sell your house or car to get their money MedlinePlus . That is in simple terms. Hope this helps . MedlinePlus
Answer2mueenAnswered at 2012-09-12 05:55:03
Basically , a secured loan is something like a deposit at your bank account . In Australia , currently considered safe , as the Australian government has assured us that they'll have to pay any amount on deposit in the event that banks lose our money , BECAUSE ensures no risk of us losing our money . MedlinePlus MedlinePlus A simpler example is that if you give someone some money and in return the borrwer gives a guarantee ( for example , the title of your home / the right to sell the house to borrowers ) that can be used to pay for what is because only if the borrower is unable to repay the money . MedlinePlus MedlinePlus An example of an unsecured loan is that if you give someone some money and the borrower has to offer some kind of guarantee . So if they do not pay then you lose everything he or she paid .
Answer3hotttyAnswered at 2012-09-30 23:44:02
Secured loan means you have to pay something for the safety of banks . If u can not return the money to the bank , they'll get from u.The disadvantage is that you have to take things for ur safety . MedlinePlus Secured loan does not mean that u do not have to pay anything for security . but banks have more interest to u no ur giving things up.
Answer4BobboAnswered at 2012-10-23 18:28:13
1. a secured loan means that the interest rate is fixed ( meaning that the interest rate remains the same until the loan is cleared) ,
Pro on the secured loan is when the interest rate goes up, you will not have to pay more interest . MedlinePlus With regard to whether the secured loan is low interest rate , you will pay more interest . MedlinePlus MedlinePlus An unsecured loan means that the interest rate can increase or decrease . MedlinePlus Pro on unsecured loan is that if the interest rate falls then you will have to pay both interest MedlinePlus With , if the interest rate is higher than you will pay more interest . MedlinePlus
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