Types of Loans

Share post:

There are different types of loan available in the market. Let us check out which are these ones.
What is a secured loan (loan)? A secured loan is a loan in which the borrower pledges some asset ( tangible goods) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The secured debt also know as Mortgage loan (BoliglÃ¥n) is thus secured against the collateral.  In case the borrower defaults, the creditor takes possession of the asset used as collateral and can sell it to recover the amount of debt due from the borrower. Another type of loan is secured loan, in this there’s no automatic link to any tangible property. In case of unsecured loan the creditor cannot take any of your possession to pay off your loan if you default. Allthough it is possible for an unsecured loan lender to get what’s called a ‘court charging order’ on your home (which could lead to repossession) if you can’t repay, this is much more difficult and less likely for it to do.So these are the two main types of loans.

Austin K
Austin Khttps://www.megri.com/
My Name is Austin K. I work as Digital Marketing Professional at Megrisoft Limited London Office. I am blogger and write on topic of News, Technology and Travel. I love Starbucks.

Related articles

A Short Guide to Filing Your Taxes Late

Filing taxes late? Don't sweat it. We've got your back! While it's always best to file on time,...

Blood & Gold

Blood & Gold is set in the spring of 1945, during the last days of WWII. It is...

The Rise Of J.V.G. Technology: A Game-Changer In The Industry

Renewable energy has emerged as a key player in the global energy market in recent years. With the...

The Complete Guide To Caring for Eyes, Passively

Did you know that over 12 million people in the U.S. experienced sight degeneration? Too much exposure can damage...