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Best Loan Provider
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A loan is a sum of money that is given by one party to another for a fixed period of time, to be
repaid by a certain date according to loan agreement.
Type of Loans
1] Secured Loans
Secured loans are those loans that are protected against an asset you own (e.g. a car or property).
Finance company or bank will hold the deed or title until the loan has been paid in full, including
interest and all applicable fees. If you default on the loan, the bank will get their money back by
way of foreclosing your property or seizing the collateral.
Secured loans are not just for new purchases of car or property. Secured loans can also be home
equity loans or home equity lines of credit.
Examples of secured loans:
- Auto Loans
- Home Loans
- Mortgages
2] Unsecured Loans
Unsecured loans are those loans that are not secured against the borrower's assets. Interest rates
are much higher as there is high risk for bank with an unsecured loan. There is nothing for bank
take possession if you go default. You must have decent credit to get an unsecured loan.
Examples of Unsecured Loans:
- Personal Loans
- Student Loans
- Personal lines of credit
- Credit Cards
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