A loan is money
borrowed at the time of crisis or urgent need with a promise of return within a
specific time period. The banks and NBFCs decide a fixed interest rate that you
have to pay on the money you borrow, along with the principal amount borrowed. There
are various types of loans available in India such as home loan, personal loan,
car loan, student loan, payday loan, debt consolidation loan, and so on.
Secured Loan
A secured
loan is provided against collateral security of any of your valuable assets.
Such type of loan is regarded as the most flexible loans as it is provided in
lower interest rates and longer repayment tracks. This type of loan is offered
in a lenient way since the lender does not have any sort of risk in the loan
amount as he/she can go for the foreclosure of the asset, especially in the case
when the borrower makes any drift in the loan repayment. The equity loan, car
loan, and the home mortgage are some of the loans categorized under secured
loans.
Unsecured Loan
On the other
hand, the unsecured loan is provided without any collateral security. Since the
lenders have the risk of their money involved, the rates and other attributes
of loan are very narrow. The borrowers cannot enjoy many privileges in the
unsecured loan. Also, you should have a good credit history in order to avail
this loan. Such type of loan usually comes at a higher rate of interest due to
the lack of collateral. Personal loan, short-term business loan, education
loans, and vehicle loans are some of the loans categorized under an unsecured
loan.
IndiakaLoan.com is one of those financial advisors who
provide the correct and professional advice to those seeking any type of these
loans. It does not just lend help in finding the best loan provider but also
help you through the entire gamut of the loan process, be it handling the
documentation or disbursal.
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