Let's talk about what is unsecured loan, unsecured loan, also called unsecured loan, or credit loan. You don't need any collateral, just identification, income proof, address proof and other materials, as well as the loan you applied for from the bank. Banks issue loans according to personal credit conditions, and the interest rate is generally slightly higher than that of secured loans. Customers can choose the loan term according to their individual circumstances, and then sign a contract with the bank, which is guaranteed.

What's the difference between unsecured loans and mortgage loans?

1. From the perspective of loan threshold, unsecured loan is definitely the best choice. Because borrowers who apply for mortgage loans must provide collateral that meets the requirements of lending institutions as collateral; Unsecured loans can apply for personal credit without the borrower providing collateral.

2. From the point of loan amount, mortgage loan is the best choice. Because unsecured loans are issued, lending institutions need to take higher risks. In order to reduce the risk, the loan amount to the borrower is not high; Mortgage loan is secured by collateral, so the risk that lending institutions need to bear is small, so the loan amount is also high. For example, the maximum amount of mortgage loan for real estate can reach 70% of real estate assessment value.

3. From the perspective of loan interest rate, the mortgage interest rate is lower. In fact, the level of loan cost has a great relationship with the level of loan risk. In other words, if the risk borne by the lending institution is small, the borrower will get a lower loan interest rate, so the mortgage interest rate is lower than that of unsecured loans.

4. In terms of lending speed, unsecured loans are better. Because mortgage loans have to go through evaluation, mortgage and other procedures, the lending rate of lending institutions is very slow; Unsecured loans do not need to go through these procedures. As long as borrowers meet the loan conditions and complete the procedures, they can get loans as soon as possible.