Secured loans

[robertbrazma]

Hiiii

I'm confused as to what this actually means. Is this the kind of loan that you take out with your bank and they automatically take the funds out of you account to repay it?

Thnx

[Broken Arrow]

Linky

[bjl584]

Basically a secured loan is one that is backed by an asset should you not pay it. Example: If you don't pay your mortgage the bank will foreclose on your home. If you don't make your car payments it will be repossessed. An unsecured loan is one that is not backed by an asset such as credit card debt.

[robertbrazma]

G'day friends,

Thnx bjl584 ,u gived nice information.

Thnx

[kenneth.robert]

Hi,

A secured loan which is backed by assets belonging to the borrower in order to decrease the risk assumed by the lender. Loans secured by tangible property that the borrower can pledge as collateral that can be seized and sold by the credit union in the event of default by borrower. If you do not pay they recover from your assets.