Guaranteed loan is a loan form in which the guarantor guarantees the borrower to repay the principal and interest of the loan on time with his own funds and legal assets;
The loan procedures of secured loans are simple, and there is no need to go through registration and evaluation procedures. You can choose one or more guarantors, who are willing to provide you with a guarantee period of at least 1 year. Visible, secured loans and credit loans are a way of ID card loans.
The difference between secured loan and mortgage loan;
1, the loan interest rate is different.
Because the secured loan has collateral or a third party guarantor, the loan risk is relatively small, and the corresponding loan interest rate will be relatively low. Then if there is no guarantor and collateral for credit loans, the loan risk will be much greater, so will the existing loan risk and the loan interest rate.
2. The loan term is different.
If the applicant applies for a secured loan under the condition of providing collateral, the loan term can be as long as 20 years, but the credit loan term is usually very short, some of them are only a few months, the longer one is usually around 1 year, and the longest one is 5 years.
3. The loan amount is different
The loan amount of the secured loan is linked to the value of your collateral or the personal economic situation of the guarantor. If the borrower has a mortgage, the loan amount can reach about 70% of the market value of the house, but the amount of hardship and fatigue is linked to the applicant's personal monthly income, which is generally 5 to 10 times of the monthly income.
4. The lending speed is different.
Due to the existence of collateral or guarantor, the procedures in the process of handling the loan are complicated, and the natural lending time is long, while the credit loan is relatively simple. After the borrower meets the loan conditions, it usually takes about a week to lend money.
What do you mean by "secured loan"? What's the difference between secured loan and mortgage loan? "I hope this article will be helpful to those who are preparing for graduate school and have graduated from graduate school.