Loan is divided into two categories namely a) Secured loans and b) Unsecured loans. Now let us discuss what are secured loans.
Secured Loans:- In simple language, secured loans are the loans taken on behalf of any security kept ( property or car ) as collateral for loan. Secured loans is also known as Mortgage Loan.
Mortgage Loans is very common type of loans, usually taken by many individual person to purchase house. This type of loan is only meant to buy property. The borrower submits the legal housing papers with the lender, as a security for the loan taken from the financial institution's. If the borrower fails to repay the whole loan, then the financial institution has the legal rights to dispose off the property any time. This type of loan is taken on car, housing etc.
If a person takes a loan on car, well known as Auto loan, the time period for the repayment of auto loans will be very less. Under auto loans comes direct auto loans and indirect auto loans.
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment