23 October 2007 03:00
Talking of the Loans
A secured loan is a loan in which the borrower pledges some asset (e.g. a House/Property) as collateral for the loan. Secured loans relieve the lender of most of the financial risks involved; he may thus offer attractive terms for the borrower on interest rates and repayment period. For a homeowner it makes sense to use the value (equity) in your property to borrow at a special rate since with a secured loan a borrower gets choices about how much one can borrow and how quickly one can pay back the loan. Thus, a homeowner can get an affordable secured loan.
1
(1 marks)