hi frndz
pl let me know what is the difference between secured and unsecured loan.
and secured from bank and secured from others.
thnx in advvvvvvvvvvvvvvvvvvvvvance
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 23 October 2010
SECURED LAONS MEANS. LAONS AGAINST CAR, STOCK, MACHINARY ETC. AND UNSECURED LOANS MEANS, LOANS TAKEN FROM DIRECTORS AND THIER RELATIVES AND FROM GROUP COMPANIES
Prateek
(M.Com. CWA- Final)
(237 Points)
Replied 26 October 2010
Secured loan:- it means it is secured against something you own (an ‘asset’) – and failing to repay the loan could result in the lender taking possession of that asset, and selling it to cover their losses.
The asset in a secured loan will normally be your home, but it can also be your car or another item of a high value.
Unsecured Loan:- An unsecured loan does not require you to secure anything against the loan – the lender relies on your contractual obligation to pay it back.
Because there is no security and the risk they are taking is therefore greater, the amount you can borrow tends to be less, and the repayment period is usually shorter.
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