Want to know the difference between Secured loan Vs Unsecured loan? Read our guide to help understand the pros and cons and find an option that suits you. For more details visit https://www.hdfc.com/blog/all-you-wanted-to-know-about-loan-against-property/

3. Obtaining a loan can be tricky. One of the most important things to know is which
type of loan is most suitable for your needs. A loan can be divided into two major
categories: a secured loan and an unsecured loan.

4. What is the difference between an unsecured loan and a secured loan? The
difference can be summed up as follows: A secured loan is backed up by
something you own – generally your home or your car – which the bank
can take if you fail to pay them back. In an unsecured loan however, no
such backups are offered.

5. Secured Loans
The Benefits of a Secured Loan
In a secured loan, you offer an asset to the bank as collateral. This
means that if you fail to pay back the loan, the bank can seize the
property that you offered. Because the bank knows that it has that
option, it views a secured loan as a safe investment, making secured
loans easier to obtain and making them available with lower interest
rates than unsecured loans.

6. The Drawbacks of a Secured Loan
Secure loans may be used for lump-sum payments, such as a home
equity loan, or for loans involving smaller payments over time, such as a
mortgage or when refinancing. In addition to having lower interest rates,
secured loans often have longer repayment time-frames and higher
borrowing limits than unsecured ones.

7. Unsecured Loans
The Benefits of a an Unsecured Loan
An unsecured loan is a loan for which you don’t offer something you own
as backup that the bank can seize if you don’t pay them back. Unsecured
loans may be used for a variety of purposes, including student loans and
personal expenses.

8. So what does it All Mean?
Now that you know the difference between secured loan vs. unsecured loan, it’s time to
figure out which type of loan works for you:
Do you own a house, car, or other large asset that you can offer as collateral? Do you want
a large, one-time payment, or do you prefer smaller payments spread out over a wider
time-frame? How much money are you looking to borrow, and what is your ideal
repayment schedule? Can you afford a loan with a higher monthly interest rate?

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10. For more details about Secured Loan VS Unsecured Loan Visit below link:
https://www.hdfc.com/blog/all-you-wanted-to-know-about-loan-
against-property/
Thank You…
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loans-vs-unsecured-loans-facts.html
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