Saturday, November 13, 2010

Secured Loans


A secured loan is a type of loan in which the borrower puts up some form of collateral, such as a car or house, or secure the loan.  In case of a default, the lender can retrieve his/her losses by taking possession of the asset and selling it off.  Examples of secured loans include mortgage loans and car loans.

Secured loans are associated with lower risks for the lender and a lower interest rate to the borrower.  From the lender's perspective, a default on the borrower's part will still lead to some sort of recouping of the original loan amount.  This is why a lender must underwrite these loans as a "no lose" situation for them.  From the borrower's perspective, the lower rates compared to an unsecured loan are better because that means lower payments.
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49 comments:

  1. dee jeyNovember 13, 2010 at 8:57 AM

    good info bro

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  2. SugarNovember 13, 2010 at 9:04 AM

    i follow you every day..nice blog

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  3. EdwardNovember 13, 2010 at 9:07 AM

    If only every loan could be like this... Nonetheless, there are people who just don't have anything to put forth as collateral.

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  4. Suciô SanchezNovember 13, 2010 at 9:16 AM

    That chain doesn't look too secure.

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  5. KRUNOSLAV DUNDOVICNovember 13, 2010 at 9:28 AM

    great blog!

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  6. AnonymousNovember 13, 2010 at 9:31 AM

    i like the picture:D

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  7. OC-STEVENNovember 13, 2010 at 10:24 AM

    thanks for the info

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  8. VoacarooNovember 13, 2010 at 10:29 AM

    Interesting. Never had to loan money though

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  9. dousNovember 13, 2010 at 10:40 AM

    I am looking into getting a loan! Thanks for this!

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  10. The Angry VegetarianNovember 13, 2010 at 11:21 AM

    This is something I'm completely ignorant to. So thanks for clarifying some of this :)

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  11. AnonymousNovember 13, 2010 at 11:32 AM

    Good info, thanks man

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  12. FredNovember 13, 2010 at 11:57 AM

    Damn - and I thought school loans were a tough lot...

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  13. MRanthropeNovember 13, 2010 at 11:57 AM

    thanks for clearing that up sir.

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  14. DiegoNovember 13, 2010 at 12:18 PM

    A good idea i guess, if you manage to do it right that is...

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  15. iMoneiNovember 13, 2010 at 12:47 PM

    good info, dont knowmmuch about this

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  16. T.dotNovember 13, 2010 at 12:52 PM

    very good info

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  17. AstraNovember 13, 2010 at 1:32 PM

    Thanks that was great information!

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  18. AnonymousNovember 13, 2010 at 1:33 PM

    seems like a safe option for the bank.

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  19. AnonymousNovember 13, 2010 at 1:39 PM

    hmmm interesting stuff, thanks for the info dude

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  20. HitchcockNovember 13, 2010 at 1:40 PM

    thanks for letting us know

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  21. T.dotNovember 13, 2010 at 2:25 PM

    such good info to have! ty

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  22. SeionNovember 13, 2010 at 2:59 PM

    Good to know about secured loans.

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  23. textileengineerNovember 13, 2010 at 4:08 PM

    Very informative post! thanks.

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  24. tonyman33November 13, 2010 at 4:12 PM

    I hate loans. Full stop.

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  25. LuigibombNovember 13, 2010 at 4:52 PM

    Loans are annoying!

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  26. DanNovember 13, 2010 at 4:59 PM

    Thats odd, i assumed every loan required collateral! good info.

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  27. AnonfourtwentyNovember 13, 2010 at 5:29 PM

    Always a good post with you!

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  28. WillowNovember 13, 2010 at 5:58 PM

    Yea, and it's those mortgage loans thats screwed up the housing right now...

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  29. AnonymousNovember 13, 2010 at 6:01 PM

    Interesting, bro!

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  30. BrandonNovember 13, 2010 at 6:11 PM

    Some good information here, thankyas

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  31. AnonymousNovember 13, 2010 at 6:16 PM

    sick loans

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  32. unintentional criticNovember 13, 2010 at 6:26 PM

    this is some good information for my future!

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  33. ShimizuNovember 13, 2010 at 6:26 PM

    Loans are annoying![2]

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  34. GurneyNovember 13, 2010 at 6:27 PM

    thats interesting never thought of things that way

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  35. DonkoteNovember 13, 2010 at 6:36 PM

    very helpful info

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  36. SpringyBNovember 13, 2010 at 7:03 PM

    I don't believe in loans.

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  37. AnonymousNovember 13, 2010 at 7:03 PM

    I don't know if I said this before but I wouldn't get a loan anytime soon!

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  38. SebastianNovember 13, 2010 at 7:45 PM

    Great post! Thanks for sharing!

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  39. CopyboyNovember 13, 2010 at 8:20 PM

    Not too keen on those types.

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  40. kokojestaNovember 13, 2010 at 8:36 PM

    good knowledge to have thanks bro :)

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  41. Classically Trained NubNovember 13, 2010 at 9:50 PM

    That's one way to keep a house under lock and key. Ba Dum Tish!

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  42. AnonymousNovember 13, 2010 at 10:20 PM

    still looks fairly risky to me

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  43. SykefuNovember 13, 2010 at 10:49 PM

    looks quite risky.

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  44. KartoffelnNovember 14, 2010 at 12:02 AM

    Too risky, I wouldn't

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  45. anon1337November 14, 2010 at 4:41 AM

    so it's a deposit, I'd be too worried.

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  46. LongkidNovember 14, 2010 at 4:50 AM

    Wow very helpful.

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  47. caretakerNovember 14, 2010 at 6:28 AM

    i follow you every day..nice blog

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  48. hindenburgNovember 14, 2010 at 7:12 AM

    Love the illustrative picture

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  49. thatguyNovember 14, 2010 at 12:48 PM

    thanks for that!
    supporting!

    Another look on facebook

    CLICK THIS

    ReplyDelete

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