Difference between Secured and Unsecured Personal Loan
There are two kinds of loans secured and unsecured loans in both cases you borrow money from banks at some rates of interest. There are so many banks in India that provide you with secured and unsecured loans.
Essentially, the contrast among made sure about and unstable credits is that if there should be an occurrence of made sure about advance you need to vow your protection from the advance. Yet, on account of an unstable credit, there is nothing similar to that. There is no compelling reason to vow anything. An unstable advance is fundamentally given based on your great financial record. Other than that, in the event that you won’t pay you a credit on time if there should be an occurrence of a made sure about advance bank recuperate it from your vowed property.
Features of Secured Loan
- You need to have some property that you can show to the bank as a security.
- The amount of loan given is quite high.
- The rate of interest is quite low.
Features of Unsecured Loan
- There is no need to show any property.
- The interest rate will be comparatively high.
- The number of loans would be quite low because of the high risk.
There Are Some Differences between Secured and Unsecured Personal Loan
- The rate of interest in the case of the secured loan is quite lower than that of in case of unsecured loans. The reason after that is there is more risk in the case of an unsecured loan.
- Furthermore, the unsecured loan comes with some restrictions. Like you have to mention properly where do you want to use this amount of loan exactly.
- The upper limit in the case of a secured loan is quite high. That is the amount of loan that you are going to get is quite high in case of the secured loan as compared to an unsecured loan.
How to Apply for Loan Online
You can easily get secured and unsecured loans online. The process is quite easy and simple. You just have to fill the online form on dialabank.com. And you will get a call back within a few minutes. Furthermore, you can compare the interest rates of different banks.
Which One is Better
If you are eligible to get both secured and unsecured loans. Then you are advised to go for a secured personal loan. Because in the secured loan you will get a higher limit at lower rates of interest.
Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.