Secured Loan Definition
 
A secured loan is a loan in which the borrower pledges some asset (e.g. a car) as collateral for the loan. The loan is thus secured against the collateral in the event that the borrower defaults, the lender takes possession of the asset used as collateral and may sell it to regain the amount originally lent to the borrower.

As the loan is secured, the lender is relieved of most of the financial risks involved; he may thus offer attractive terms for the borrower on interest rates and repayment period.
Unsecured Loan Definition
Unsecured loans are loans that are not guaranteed with any asset, so that the risk of repossession does not exist. Though the lender can still take legal action in order to recover the money, such a legal process would be significantly longer and more expensive than with secured loans.

Typical unsecured loans are credit card debt, bank overdrafts, and personal loans.
Consolidation Loan Definition
Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. .
Home | About Us | FAQs | Contact Us | Financial Glossary | Loan Definition | Privacy Policy
Copyright © 2012 UK-LOANS-SEARCH.COM
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Our typical rate is 11.9% APR variable. This means 66% of our customers get their secured loan at this rate or better.