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What does a secured loan and unsecured loan mean?

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A secured loan is a loan in which there is physical collateral, meaning there is a physical item of worth that can be taken by the bank if the loan is not paid. Examples of this include a car loan or mortgage (house loan); the car or house are the collateral and therefore are the 'security' that the bank will not lose money on the loan.

An unsecured loan is a loan in which there is no physical collateral, meaning there is no item of worth the bank can take if the loan is not paid. Examples of this include credit card debt or a student loan; in these cases, if the loan isn't paid the bank has to use a collections agency to try to get the money back.
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What are the similarities and differences between a secured loan and an unsecured loan?

The similarities are that both types of debts can be collected according to the respective laws governing the transactions. Secured debts are those in which some form of colla

Debt consolidation on secured and unsecured loans with bad credit?

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What are the differences between a secured loan and an unsecured loan?

A secured loan is a loan in which you offer some or other asset to which you have right of ownership for security to the supplier of the loan in case of nonpayment. An examp

What is the difference between secured and unsecured loan?

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How can you get unsecured loan?

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Is bank OD a secured or unsecured loan?

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Where do you get an unsecured loan?

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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 t

What is the difference between secured and unsecured loan at the bank?

A secured loan is where there is a physical item that can be claimed if the loan is not paid - a house, a car, jewelry, etc. An unsecured loan is where there is nothing for a

How does a secured loan differ from an unsecured loan?

A secured loan is a loan that some monetary interest (money or property of value) attached to the loan to insure its repayment. If the loan is not repaid, the monetary interes

What are unsecured loans?

An unsecured loan is a loan in which the borrower does not need to  pledge their valuable asset as collateral to the bank. It can be  availed through any financing firm in I