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What is an unsecured loan?
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18th Nov 2009 by JonB
Security is used to describe what the lender has right to in case a loan is defaulted on or their collateral. For example, the security in a mortgage is a house. The security in a car loan is the car. An unsecured loan is with without any real collateral behind it. Examples of unsecured loans could be credit card loans, or simply a personal loan given to you by your bank. As you can imagine, unsecured loans typically have higher interest rates and less favorable terms than loans with security.
Security is used to describe what the lender has right to in case a loan is defaulted on or their collateral. For example, the security in a mortgage is a house. The security in a car loan is the car. An unsecured loan is with without any real collateral behind it. Examples of unsecured loans could be credit card loans, or simply a personal loan given to you by your bank. As you can imagine, unsecured loans typically have higher interest rates and less favorable terms than loans with security.
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17th Nov 2009 In Finance
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Subjects: unsecured loan,