answersLogoWhite

0


Best Answer

A secured loan would be a car loan for example. The car is used as collateral for the loan. A signature loan would be an unsecured loan. The only thing the lender would do is look at your credit worthiness and make you a loan based on you simply saying you'll pay them back.

User Avatar

Wiki User

8y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

11y ago

basically in which no security is used are unsecured loans and where secuity are used are secured loans

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between secured and unsecured loan?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is an unsecured loan used for?

The difference between an unsecured loan and a secured loan is very big if for some reason bankruptcy is declared or the loan cannot pay repaid. Secured means that the buyer still needs to repay and unsecured mean he doesn't if bankruptcy is declared.


What is the difference between secured and unsecured loan at the bank?

A secured loan is where there is a physical item that can be claimed if the loan is not paid - a house, a car, jewelry, etc. An unsecured loan is where there is nothing for a bank to take to get its money back if you default, such as education loans, credit cards and similar loans.


What is the difference between secured and non secured loans?

Secured loans are backed by an asset, to be collateral in case the borrower defaults on the loan. An unsecured loan does not have this and usually costs more and has a higher risk to the bank.


How do unsecure personal loans differ from secure ones?

The difference between an unsecured loan, and a secured loan is pretty substantial. A house, or a car is used as collateral and therefore secures the loan for the lender. For an unsecured loan, there is no collateral available to the lender.


What core differences are there between a secured and unsecured loan?

Secured and unsecured are the two main types of loans. Secured loans require the borrower to give some form of security to the lender, like a home or car. Unsecured loans do not require any kind of collateral.


What is the difference between a secured loan and a unsecured loan?

A secured loan is a loan where you have to provide some form of collateral. An unsecured loan is where you do not but the interest is very high and typically is not provided by legitimate financial institutions.


Are secured loans better to get than unsecured ones?

With a secured loan, you are able to borrow more money than with an unsecured loan. It would depend on how much you needed to be loaned. Most institutions offer both, however, I would go with a secured loan.


How does a secured loan differ from an unsecured loan?

A secured loan is a loan that some monetary interest (money or property of value) attached to the loan to insure its repayment. If the loan is not repaid, the monetary interest becomes the property of the loaning party. A unsecured loan does not have a monetary interest attachment.


What is a non secured loan?

An unsecured loan is a loan that is not backed by collateral. Also known as a signature loan or personal loan. Unsecured loans are based solely upon the borrower's credit rating.


Will you pay more interest on an unsecured personal loan than a secured one?

The amount of interest you pay depends on the institution that you borrow from. You will usually pay more on an unsecured personal loan than a secured one.


What is valuation and verification of secured and unsecured loans in auditing?

by getting the loan statement.


Can you explain what the difference is between unsecured and secured business credit cards?

Unsecured credit cards allow free spending with a credit limit. They are the most common type of credit card and are based upon trust. Secured credit cards are backed by funds that are pre-paid into the account or collateral. They are more like a loan.