Article: A Quick Guide To Secured Loans

A Quick Guide To Secured Loans

As the name suggests, a secured loan is a loan given to the borrower on a condition that he provides the lender with something as a security to the loan amount. Generally, the security offered is the borrower?s home. The property pledged as the security is called collateral.



Secured loans are not risky for the lenders since they have something from which they can recover their loan amount, if the borrower fails to repay. For this reason, secured loans are offered at lower interest rates than the unsecured ones.



Secured loans are easier to get because of the collateral offered. The ability to offer collateral makes the secured loan accessible to a whole lot of persons. People who are otherwise unable to prove their creditworthiness can get a secured loan if the...
 

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A Quick Guide To Secured Loans

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