What's the difference between unsecured loans and secured loans?

Answers:3   |   LastUpdateAt:2012-10-16 10:34:03  

Asked at 2012-10-02 05:57:02
I want to know what is the difference between unsecured and secured loans ?
Answer1condorAnswered at 2012-10-03 08:59:06
To get a secured loan to put some sort of valuable collateral like your home to "secure" the loan . You get a much lower interest tate because there is much less risk for the bank - if you can not pay the loan which has the right to sell their material to recover its money .
Answer2maryfaeAnswered at 2012-10-05 23:48:38
A good example would be an unsecured credit card . The bank has no guarantee that you will never pay what you owe on the card. If you do not pay , you can sue for the money , but have no way to recover their money . MedlinePlus MedlinePlus A secured loan is when you borrow money from a . Give the lender a right in property for failure to pay , for example , a car loan . The lender will probably insist you give a chattel mortgage on the car as security. If you do not pay , your car reposses , sell and use that money to pay off your loan . MedlinePlus MedlinePlus The collateral for the loan is sometimes also called "guarantee" or simply " collateral " because the lender gives another way to collect money , except for his promise to return the money .
Answer3English2Answered at 2012-10-16 10:33:07
Secured loans are those in which are some guranty back again that loan. can guranty of assets. take loans from banks and other institutions that provide credit the facilty take some assets as guranty
. MedlinePlus unsecured loan does not contain any guranty . These loans can be obtained only from people you know and beleave that will return your money . these loans have not guratee .
Related Questions
  • Answer This Question:What's the difference between unsecured loans and secured loans?