The difference between mortgage loan and unsecured loan
1, collateral requirements
Mortgage loans need valuable things such as houses and cars as collateral; Moreover, unsecured loans do not need collateral, and individuals only apply for loans based on personal credit.
2. Loan amount
The loan amount of mortgage loan is related to the assessed value of collateral, which is generally large; The loan amount of unsecured loans is related to personal income and credit information.
3. Loan interest rate
Due to different risks, the interest rate of general mortgage loans is higher than that of unsecured loans.
4. Different application conditions
The application condition of mortgage loan is mainly to be able to provide collateral; The application conditions for unsecured loans require that individuals have a good credit record and can provide proof of work and income. Different banks have different requirements for application conditions. Generally speaking, the requirements for applying for unsecured loans are stricter.
Advantages of mortgage loan
1. Higher loan amount: The amount of mortgage loan is directly proportional to the value of collateral. At present, most enterprises use real estate as collateral to meet the requirements of mortgage loans. Some assets with relatively low value are generally not used as collateral assets. Therefore, in terms of loan amount, the amount of mortgage loan is much higher than that of unsecured loan.
2. Low loan interest rate: Due to the collateral with sufficient value, the borrower's interest rate is lower than that of unsecured loans.
3. During the mortgage period, the property right of the mortgaged assets still belongs to the borrower: because the mortgagor only gives the mortgagee the right to dispose of its assets in case of failure to repay the loan on time, so as to ensure the recovery of the loan. Therefore, during the mortgage period, the property owner can still use all his assets normally.