Secured Loan

       Unsecured Loan

 A Secured Loan is a loan in which the Borrower pledges some assets  (such as Valuable Property.) as collateral for the loan, which then becomes secured debt.

Unsecured Loan is not connected to any specific piece of property.


A secured loan made on the security of assets, the market value of which is not at any time less than the amount of loan

Unsecured loans are of risky nature and bankers rely entirely on the reputation, goodwill, integrity and the character of the borrower.


Security Loan must be made on the security of tangible assets like goods and commodities, land, buildings, gold silver etc.  

Bankers allow secured loans or advances in the following ways- 

- Purchasing and discounting of bills
- Cash credit against hypothecation of movable property
- Advance against government supply bills
-Advance against promissory notes guaranteed by one or more persons of good creditworthiness etc.


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