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Urgent:Secured Loans and Unsecured Loans

S.Vinothbabu (Articled Assistant) (159 Points)

07 February 2009

Hello friends,

What are the difference between secured loans and unsecured loans?

Can any one explain?

pls help me.

S.Vinothbabu

www.cavictory.blogspot.com

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10 Replies

Deepak.R (CA - PCC Student / Articled assistant) (177 Points)
Replied 07 February 2009

Hi Vinoth..!

In my view, secured loans are those which are taken by pledging some securities and unsecured loans are taken without pledging any security..

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BALASUBRAMANYA B N (CCI STUDENT....) (44671 Points)
Replied 07 February 2009

Secured loans are loans in which you offer the lending institution some kind of guarantee that they will receive payment for the loan. The example of a guarantee might be some assets that you have, like your house or your car or stock certificates. Although you don't have to turn them over to the lending institution in order to get the loan, having them in your possession assures the lending institution that if you are to default on your payment they would have something to seize and sell to recover their losses.

an unsecured loan is a loan in which you simply use your credit rating to help you borrow money from the lending institution. People who do not have assets or do not want to provide assets as a guarantee may prefer this type of loan as an alternative.

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9058 Points)
Replied 28 March 2009

secured loans are those which are taken by giving some securities and unsecured loans are taken without giving any security..

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9058 Points)
Replied 28 March 2009

secured loans are those which are taken by giving some securities and unsecured loans are taken without giving any security..

VIJENDRA DARGAR (JOB) (95 Points)
Replied 30 March 2009

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VIJENDRA DARGAR (JOB) (95 Points)
Replied 30 March 2009

CORRECT

VIJENDRA DARGAR (JOB) (95 Points)
Replied 30 March 2009

IN CASE OF DEFAULT IN REPAYMENT LENDERS (BANKERS ETC.) CAN EASILY RECOVER THEIR MONEY BY SELLING SECURITY PLEDGED BY THE BORROWERS.

BUT IN CASE OF UNSECURED LOANS LENDERS (BANKERS ETC.) CAN CLAIM FOR THEIR MONEY ONLY, THEY CAN'T RECOVER THEIR MONEY BY SELLING SOMETHING OF THE BORROWER AS NOTHING IS AVAILABLE AS SECURITY.