What is an example of an unsecured loan?What is difference between secured and unsecured loan?What are the types of unsecured loans?

 What is an example of an unsecured loan?

Unsecured loans don't involve any collateral. Common examples include credit cards, personal loans and student loans. Here, the only assurance a lender has that you will repay the debt is your creditworthiness and your word. For that reason, unsecured loans are considered a higher risk for lenders

What is difference between secured and unsecured loan?

There are two types of loans: secured and unsecured. ... Secured loans require that you offer up something you own of value as collateral in case you can't pay back your loan, whereas unsecured loans allow you borrow the money outright (after the lender considers your financials).

What are the types of unsecured loans?

Types of Unsecured Loans Based on Tenure and Repayment

• Revolving loans. It is a type of financial instrument that allows borrowers to withdraw an amount, repay it and withdraw again. ...
• Term loans. ...
• Consolidation loan. ...
• Wedding loan. ...
• Vacation loan. ...
• Home renovation loan. ...
• Top-up loan. ...
• Bridge loan.