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It is a kind of loan where there is no primary or secondary security or collateral taken by the bank.
They can refuse if the loan outstanding is much more than the collateral provided. Ex: If you have a loan outstanding of 100,000$ and you have provided a collateral of 50,000$ you cannot expect the bank to release any collateral. Lets say your outstanding is only $30,000 then you can expect the bank to release a certain portion of the collateral atleast $20,000
The car itself
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.
If the loan is secured, then the collateral is returned to the bank. If the loan is unsecured, like a credit card, then the bank submits the balance to the estate of the deceased.
It is a kind of loan where there is no primary or secondary security or collateral taken by the bank.
The word collateral in business is that the bank has rights to take away your collateral or something that you put in stock that you own. For example, John owns a farm and he took a loan. The problem is that he didn't deposit his loan in the bank back, so the bank took his collateral that he put in the bank if he didn't pay his loan back. So that is why the bank has John's farm. So I prefer that if you take a loan, then pay your loan back. Or else your collateral is bye-bye.
If it is with the same bank/financier then - Yes (Depending on how much loan you already have and how much collateral you have provided) Ex: Lets say you have a bank CD of $100,000/- as a collateral for a loan of $50,000 then the bank may give you extra loan against that CD. But if you already have a loan of $150,000 then the bank may not give you any further loans on the same collateral If with a different bank/financier then - No. If you provide something as collateral you need to submit the original docs to the bank. So any other bank may not grant you loans on that collateral.
They can refuse if the loan outstanding is much more than the collateral provided. Ex: If you have a loan outstanding of 100,000$ and you have provided a collateral of 50,000$ you cannot expect the bank to release any collateral. Lets say your outstanding is only $30,000 then you can expect the bank to release a certain portion of the collateral atleast $20,000
The car itself
If the loan is secured, then the collateral is returned to the bank. If the loan is unsecured, like a credit card, then the bank submits the balance to the estate of the deceased.
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.
A collateral is nothing but any asset (Bank deposits, your house, jewels, machinery etc) that the bank can convert to cash by selling it if you default on your loan repayment. The presence of a collateral enhances your credit profile and improves the chances of your getting the loan. An agreement wherein, the loan customer accepts to the conditions of the loan granting banks control over the collaterals is termed as a collateral agreement
Sure. Be prepared to put up collateral.
Collateral is an adjective that is frequently used elliptically as a noun. The bank wanted collateral (property) to secure the loan. It is understood that the property is offered collaterally to secure the loan so the noun 'property' is omitted.
If you have a good credit history and assets to cover a potential loan as collateral, any mainstream bank will be happy to provide you with a loan.
No I have no money to loan but you might get a personal loan at a bank. They are fairly easy to get.