ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Secured loans are loans which require the borrower to pledge an asset or security to avail the loan. Home loans and car loans are the most common examples of secured loans where the borrower will be required to pledge the vehicle or house to be purchased as collateral, which then become secured debt.

Detailed explanation-2: -A secured loan is backed by some form of collateral. Real estate, equipment, accounts receivable, future credit card receipts – all can be used as a guarantee that supports or “backs” the loan.

Detailed explanation-3: -A secured loan is a loan backed by collateral. The most common types of secured loans are mortgages and car loans, and in the case of these loans, the collateral is your home or car. But really, collateral can be any kind of financial asset you own.

Detailed explanation-4: -A secured personal loan is backed by collateral, meaning something you own can be taken by the bank if you do not pay the loan under the agreed terms. An unsecured personal loan does not require any form of collateral for you to qualify. Both types of personal loans have their pros and cons.

Detailed explanation-5: -A secured loan, also referred to as a collateral loan, is a loan backed by property or collateral. Secured loans differ from unsecured loans by the amount of risk the loan puts on both the lender and the borrower.