What Is The Meaning Of Secured Loan

A secured loan is a type of loan wherein the borrower pledges an asset like car, home or property as collateral for the loan amount. The loan amount is secured against the collateral and incase the borrower defaults on the loan, the lender can take possession of the secured asset and sell it to recover the money lent to the borrower.

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Personal Unsecured Credit Lines

Before we talk about personal unsecured credit lines, let us first understand what is a line of credit. Basically, a line of credit is a revolving loan which is used to finance seasonal or short-term expenses. It works on the same principle as a credit card.