Friday, April 15, 2022

Secured loans and Unsecured loans / Secured loans V/S Unsecured

In this article we will give you information about secured and unsecured loan in Hindi. If you are applying for any loan and you do not know what a secured and unsecured loan is then this article is for you. Whenever you apply for a loan, you may have heard of secured and unsecured loans and you may have wondered what a loan is. In this article, we will provide you complete information about secured loan and unsecured loan, so read this article till the end. Your credit history is important in both secured loans and unsecured loans.


1. What is a secured loan?

A secured loan is a loan in which you have to pledge something to the lender as collateral or security. You can use home, car, purchased item, gold etc. as collateral or security. In this loan, you have to give full confidence to the lender that you will be able to repay the entire loan amount on time, so you have to keep something as collateral with the lender.

2. Secured loan

Under this loan, you can take advantage of lower interest rates, higher loan amount and longer loan term. This loan is given to the applicant with a guarantee by the lender. If you do not repay your loan in full to the lender on time, the lender may sell your collateral to recover your money.

3. What is an unsecured loan?

An unsecured loan is the complete opposite of a secured loan. In unsecured loans, the CIBIL score of the applicant is very important. No lender will give you this loan if you have a very bad credit history. So, before applying for any unsecured loan, you have to pay close attention to your credit score.

To get this loan, you do not need to give anything to the lender as collateral or security. The interest rate of unsecured loan is higher than that of secured loan. You get lower interest rates, lower loan amounts and shorter loan terms compared to secured loans. This loan is given to the applicant by the lender at his own risk as there is no property for recovery in case of default. You can apply for a secured loan if your loan is denied based on your credit history.

Lenders consider a number of factors before granting you this loan, such as:

Applicant's credit score, character, employment history
Your current income, ability to repay the loan
Money in a capital or savings account

4. Secured loan and unsecured loan - which is better?

In my opinion a secured loan is better. Because this loan is secured, you get it in less time. Secured loan (secured loan) you get at low interest rate and for long term. In this you can take more loan amount than unsecured loan. By reading this article, comparing both secured and unsecured loans, you can guess that secured loans are comparatively more profitable. With less risk in secured loans, lenders approve your loan in less time.

Before applying for a loan from any bank or financial institution, you should cover a few things in advance. For example, if you are taking a personal loan, you need to know about the interest rate of personal loan, if you are taking a home loan, it is very important for you to be aware of the interest rate of home loan and so on. Before applying for a loan, it is very important for you to know the interest rate of the loan.

5. Conclusion

In this article, we have provided you complete information about what is a secured and unsecured loan in Hindi 2022. You can read this article to compare secured loans with unsecured loans. If you want a loan with low interest rate and long term and higher loan amount, you can go for secured loan. As a secured loan is secured, it is approved by the lender in less time. We hope you find this article informative. If you liked this article, please share it with your friends.

Questions about secured loans and unsecured loans:

Q. What is the difference between secured and unsecured loan?
The answer is that a loan in which the bank has no risk is a secured loan and the loan that the bank gives to the customers at its own risk is an unsecured loan.

6. Don't take a loan

Sometimes we just talk about the loan that we should never fall into its trap. The less the better. However, sometimes loans become necessary for us. For example, if you are buying a home, a home loan may be helpful. At the same time, if you suddenly need money, you can take a personal loan from a bank. In this case, we need to know about every aspect of the loan. There are generally two types of loans offered in the banking system. First, secured loan and second unsecured loan. It is important for us to know what these loans are and the differences between them.

7.Security financial

A secured loan is a secured loan. A lot is clear from the name itself. The bank gives the loan by mortgaging the property in the secured loan. In secured loans, the customer always has to give any guarantee or assets to the bank. For example, if you take out a home loan to buy a home, the bank will have the right to the house papers until you pay off the full home loan.

You can use collateral or physical and both assets for securities. Material possessions include property like gold, house, car. At the same time, financial assets include equity shares, FDs, mutual funds, life andInsurance policy is included. Since a secured loan is given against your property, it secures the bank's money. The bank is sure that if you do not pay, it will sell your property and recover it. Therefore, the interest rate is lower. The disadvantage is that if you do not repay the loan, the bank will sell your assets and recover your money.

8. Unsecured loan

An unsecured loan is an unsecured loan. When a loan is given without any guarantee, it is an unsecured loan. This loan has no guarantee or collateral from the customer. Banks offer unsecured loans based on the customer's credit history and credit score. In this, the bank looks at the customer's past payment history, source of income, six months salary slip or income tax return and approves the loan based on that. Unsecured loans have higher interest rates than secured loans and have shorter repayments.