0
A secured loan is a loan which has been secured against an asset, in most cases a property. This reduces the risk to the lender as if the borrower defaults on paying the loan back, the asset can be sold by the lender to reclaim some if not all of the monies.
An unsecured loan poses a much greater risk to the lender and the higher interest rates reflect this risk. If the borrower defaults on paying this type of loan back, the lender only has the option of issuing a default against the borrower reducing the likelihood of the borrower getting furtutre credit.
If you are looking for a loan within the UK visit
http://www.guaranteedonlinepersonalloans.co.uk
or alternatively visit
http://www.guaranteed-acceptance-loans.co.uk
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is the difference between secured and non secured loans?
Secured loans are backed by an asset, to be collateral in case the borrower defaults on the loan. An unsecured loan does not have this and usually costs more and has a higher risk to the bank.
What is a non secured loan?
An unsecured loan is a loan that is not backed by collateral. Also known as a signature loan or personal loan. Unsecured loans are based solely upon the borrower's credit rating.
How is an unsecured loan different from a secured loan?
Secured Loan: A Secured Loan is a loan, in which a person has to provide an asset such as gold/property as collateral to the lender. This type of loan is favorable for those borrowers who need finance at low interest rate and for longer duration.Unsecured Loan: In an Unsecured Loan, a person does not need to give any security to the lender. In this, what matters the most for the lenders is the credit rating and repayment capability of the borrower. This is good for borrowers such as tenants, non home-owners etc.
Difference between funded and non-funded credit facilities?
fund based facilities includes cash credites, bill discounting, overdraft and term loan
What is the secured redeemable non convertible debenture?
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture
What is the difference between secured and non secured loans?
Secured loans are backed by an asset, to be collateral in case the borrower defaults on the loan. An unsecured loan does not have this and usually costs more and has a higher risk to the bank.
What are the 7 non current liabilities?
Equity shares, debenture, secured loan, non secured loan, borrowings, reserves , retained earnings
What are the 7 current liabilities?
Equity shares, debenture, secured loan, non secured loan, borrowings, reserves , retained earnings
Where do you get a loan to pay child support?
it's just a non-secured loansee link
What is a non secured loan?
An unsecured loan is a loan that is not backed by collateral. Also known as a signature loan or personal loan. Unsecured loans are based solely upon the borrower's credit rating.
How is an unsecured loan different from a secured loan?
Secured Loan: A Secured Loan is a loan, in which a person has to provide an asset such as gold/property as collateral to the lender. This type of loan is favorable for those borrowers who need finance at low interest rate and for longer duration.Unsecured Loan: In an Unsecured Loan, a person does not need to give any security to the lender. In this, what matters the most for the lenders is the credit rating and repayment capability of the borrower. This is good for borrowers such as tenants, non home-owners etc.
What is the difference between a proposition and a non proposition?
difference between a proposition and non proposition
What is the difference between agriculture and non-agriculture?
Agriculture is farming and non-agriculture is non farming.
Difference between funded and non-funded credit facilities?
fund based facilities includes cash credites, bill discounting, overdraft and term loan
What is difference between Cognizable and non-cognizable offences?
difference between Cognizable and non-cognizable offences?
Difference between typing and non typing keys?
Difference between typing and non typing keys
What is the secured redeemable non convertible debenture?
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture
