Finance Articles

What is the difference between a Secured Loan and Unsecured Loan given by Banks?

Tejas Charukula

Updated on 30-Jul-2019 290 Views

People take bank loans for many purposes, like purchasing houses, purchasing vehicles, educational purposes, or to meet the unforeseen personal expenses. Banks provide short term and long term loans at fixed or variable interests, to be repaid in a fixed period of time.Banks provide both secured and unsecured loans. Let us see what are they.Secured loanSecured loans are those types of loans that can be protected by using an asset or a collateral of some kind. The type of item that is being purchased by the person, then collateral such as his car or house can he used to keep ...