ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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subprime loan
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secured loan
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unsecured loan
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credit card loan
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Detailed explanation-1: -UNSECURED LOAN is a loan that is given on the basis of customer creditworthiness. The lender will sanction the loan without taking any collateral from the borrower.
Detailed explanation-2: -Unsecured loans are debt products offered by banks, credit unions and online lenders that aren’t backed by collateral. They include student loans, personal loans and revolving credit such as credit cards.
Detailed explanation-3: -An unsecured loan is a loan that doesn’t require any type of collateral. Instead of relying on a borrower’s assets as security, lenders approve unsecured loans based on a borrower’s creditworthiness. Examples of unsecured loans include personal loans, student loans, and credit cards.
Detailed explanation-4: -Loans may be secured or unsecured. Secured loans require some sort of collateral, such as a car, a home, or another valuable asset, that they lender can seize if the borrower defaults on the loan. Unsecured loans require no collateral but do require that the borrower be sufficiently creditworthy in the lender’s eyes.
Detailed explanation-5: -What is an example of an unsecured loan? Student loans, personal loans and credit cards are all examples of unsecured loans.