Everyone should be ready for an emergency situation. We never know about our financial crisis. It does not knock and come, so it’s a better option to be prepared for any unwanted urgent situation. We all have come across the word called ‘loan’. But do we know about the various types of loans and how is it useful for us? Yes, it is true that we all are familiar with the terms like home loan, personal loan or loan against property but do we have any idea about a secured or unsecured loan? Now, if you want to apply for a loan, you can definitely stay in touch with the Rupee Station, which offers you a loan at a lower rate of interest, offers you credit even if you have a low CIBIL score, grants you online documentation and gives you approval in 2 minutes. So, for example, if you want to apply for a personal loan in Bangalore, you can stay connected to the Rupee Station.
First of all, it is urgency for us to know the actual definition of secured loan and unsecured loan. At the same time, we should also know which one should we prefer if we are applying for a loan?
What is a secured loan?
There are many situations where we get stuck and unable to apply for loans. One of the reasons is Low CIBIL score, at this time we are left with an option of applying for a collateral loan. Here, in the same way, a secured loan can be defined as;
A loan is connected to a piece of collateral, something valuable like home, gold or even a car. It is an easy way of dealing with the banks as in this case; the lender is allowed to take the possession of the collateral or the mortgagee, only if the borrower is unable to pay the loan according to the decided tenure.
Home loan or Car loan is common types of secured loan.
Now, what is an unsecured loan?
As its name suggests it is just the opposite of the secured loan. Here, the loan is not protected by any of the mortgage or collateral like gold, home or car. In this case, if the lender is unable to pay back the loan to the bank, the property is simply occupied or taken away by the bank.
Student’s loan, Personal loans, and credit cards are types of unsecured loans
It is an important part to analyze both of them technically and critically. A customer would definitely be looking forward to a conclusion to understand which one should prefer while applying for loans?
Secured or Unsecured?
We have already mentioned about both the terms, now it’s time to decide which one is better and why?
First of all, describing the difference between them:
1. Secured loans are easier to get than the unsecured loan
2. Secured loans are not a threat or risk to the lenders, imagine a situation where you lose your house because of not paying the loan but its okay. But what if you are not able to pay your loan and your loan type is unsecured; you would be so stressed because of major debt load on you
3. The secured loan could be avail for you even if you have a poor credit history or re-building your credit history but this does not happen in unsecured loan
4. A secured loan is lender’s priority
5. Of course, every borrower would like to avoid risks, and so they prefer secured loan
6. The secured loan could be avail even in a low rate of interest
7. Secured loans would grant you higher borrowing limit which would let you gain more profit.
This is the basic difference. Now, if you want to apply for personal loan as well as business loan in Bangalore, you just have to check your eligibility to apply for Personal loan in Bangalore, via Rupee Station We hope this article is successful enough to make you understand the role of the Rupee Station. It offers you a loan at a lower rate of interest, at a low CIBIL score, 2 minutes approval, fast verification, and even paperless documentation process.