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/
I'm Austin K., a passionate writer exploring the world of News, Technology, and Travel. My curiosity drives me to delve into the latest headlines, the cutting-edge advancements in tech, and the most breathtaking travel destinations. And yes, you'll often find me with a Starbucks in hand, fueling my adventures through the written word

Related articles

Happy Father’s Day 2025 Wishes, Quotes, Messages, Captions & More

Ultimate Collection of Happy Father's Day 2025 Wishes, Quotes, Messages, Captions & More Celebrate the true essence of fatherhood...

Tyler Perry’s Straw: Plot & Characters Unraveled

Unraveling the Standoff in Tyler Perry’s Straw: A Deep Dive into the Plot and Characters Tyler Perry’s Straw is...

The Dangers of Relying on Payday Loans for Emergencies

In times of financial difficulty, the promise of an instant cash advance via payday loans might seem like...

How Technology is Revolutionizing Assisted Living

Technology in assisted living is making life easier and safer for seniors. It helps staff provide better care...