Secured Loan vs Unsecured Loan
SECURED LOAN Advantages – Eligible for a higher loan amount. – Credit policy will be liberal. – Get substantially lower interest rates than an unsecured loan. Disadvantages – Have to pay fees for valuation of your asset in most of the cases. – The loan can be used for a specific purpose only. – In case of non-payment, the lender will seize your property. UNSECURED LOAN Advantages – Both tenants and homeowner are eligible to apply for a loan. – You can use assets for raising additional funds from the market. – In case of non-payment, the lender doesn’t have any claim on your property. Disadvantages – Too much paperwork. – The loan amount will be smaller than secured loan applications. – Rejection ratio is usually very high in these categories of loans. Reference Article: Secured Loan vs Unsecured Loan ____________________________________________________________________________ In case of any query related of loans, get free consultation here. ____________________________________________________________________________