Secured Agreements are offered by the financial institutions and the good things about them is that "good credit history" is usually not required for this type of loan.
2. What is a Secured Loan?
Secured Loan Agreement is an agreement in which
borrower submits security to the lender against the
amount borrowed.
Secured Loans are made to the borrower against the
items known as “security or Collateral”
In case of defaults, lender sells the collateral and
recoup its amount.
However, there are certain terms & conditions which
briefs the treatment of the collateral, in case of default
There is often a term used in conjunction with the
secured loan agreement i.e. “security agreement”
3. What is a Security
Agreement?
Security agreements are mostly used
with the promissory note.
This document contains the brief
description about the item and describes
the procedure of treatment of collateral.
The purpose of this document is to make
secured loan agreement a legally sound
agreement and to list all the terms and
conditions regarding to the loan
agreement.
4. Types of Secured Agreement
There are three types of secured
agreements.
Secured by Guarantee
Secured on Physical Assets
Secured on Financial Asset
To read more about the Secured Loan
Agreements, please visit
http://www.loandocreviews.co.uk/