Introduction of Secured And Unsecured Personal Loans

secured and unsecured personal loan

Money borrowed from a lender with a promise to pay back within a given timeframe is essentially referred to as a loan. Along with the borrowed amount, the borrower has to pay interest at a rate decided by the lender. Loans are classified into types: secured loans and unsecured loans. Secured Loans Loans where the borrower has to pledge some collateral as security are called secured loans. The pledged asset acts as security against the loan in case of a default. If there is a payment default, the lender can…

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