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Secured And Unsecured Loans

A Secured And Unsecured Loan is a type of debt where an individual mortgages their immovable property to obtain the needed funds. The borrower amount provided to the borrowers is based on the value of collateral or security. There are many banks and financial institutions that allow the ownership deed of the security until the loan amount is paid off.

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Secured And Unsecured Loans

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  1. Secured And Unsecured Loans

  2. Secured And Unsecured Loans A Secured And Unsecured Loan is a type of debt where an individual mortgages their immovable property to obtain the needed funds. The borrower amount provided to the borrowers is based on the value of collateral or security. There are many banks and financial institutions that allow the ownership deed of the security until the loan amount is paid off. The individual can get a lower interest rate with a flexible repayment schedule as an individual has pledged their property as collateral or security & the banks can have the advantage of lower risk profile.

  3. There are several types of Secured And Unsecured Loan such as Used Car loan, Working capital loan, loan against property, Lc discounting, NRI loan against property, letter of credit, home loan, home construction loan, bank guarantee, commercial property loan, etc... Unsecured loans do not ask an individual to pledge assets or collateral to acquire funds. The borrowers who acquire unsecured loans have a high-risk profile & the rate of interest is more than the secured loans and requires less documentation and evaluation process, therefore the processing is faster. Only based on the financial status of the individual, banks assess the repayment capacity by evaluating his / her creditworthiness. These are of many types such as Personal loans, education loan, professional loan, etc.

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