Secured Loans

Those loans provided only with the assets as security is termed as secured loan. Some of the features of secured loan are listed below:

• Provided only with collateral: All sorts of secured loans are provided only with collateral(assets). Without the assets secured loans cannot be taken.

• Low risk: The secured loan provides low risk to the borrower. Since the creditor is entitled with the possession of security, his financial risk is totally reduced. If the debtor is default of his payment then the creditor can sell the collateral to fulfill his amount.

• Low rate of Return: The secured loan provides less risk to creditor which results less return to him.As various risk is escaped the creditor will satisfy in less return.

• Less criteria: Secured loan provides less criteria to be fulfilled by debtor. Creditor should fulfill less restriction for taking his desired loan amount.

• Provided for all purpose: The loans provided with secured loan are flexible in nature. There is no any criteria for debtor for using his amount in only particular field as others source provide.