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Learn About the Differences between Secured and Unsecured Loans

When you are borrowing money, you will likely need to make a decision between a secured loan and unsecured loan. Read on to know the difference and find out which one is better for your business.

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Learn About the Differences between Secured and Unsecured Loans

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  1. Learn About the Differences between Secured and Unsecured Loans

  2. When You Are Looking To Borrow Money, You Need To Decide Whether To Opt For A Secured Loan Or An Unsecured Loan. Read On To Know The Differences Between The Two Forms Of Credit.

  3. What Is A Secured Business Loan? A Secured Business Loan Is A Type Of Funding That Is Offered Against A Personal Guarantee Or By Pledging Assets As Security.

  4. What Is An Unsecured Business Loan? When You Opt For An Unsecured Business Loan, You Can Borrow A Certain Amount Of Money Without Having To Pledge Any Asset As A Collateral.

  5. Know The Difference

  6. Collateral Requirement: If You Want A Secured Loan, Then You Have To Offer An Asset As Security To The Lender. To Obtain An Unsecured Loan, All You Need Is A Good Credit History And A Stable Income.

  7. Rate Of Interest: Most Secured Loans Come With Significantly Low Rates Of Interest. On The Other Hand, Unsecured Loans Have Moderately Higher Rates Of Interest.

  8. Amount of loan: If You Need A Higher Loan Amount, It Is Better To Apply For A Secured Business Loan. It Is Because, Most Unsecured Business Loans In India Offer Comparatively Lesser Loan Amounts.

  9. Disbursal Time: Secured Loans Take Longer To Process As There Is A Lot Of Due Diligence That Needs To Be Done By The Lender, While Unsecured Loans Have A Fast Loan Disbursal Process.

  10. Repayment Tenure: A Secured Loan, Generally, Has 15 To 30 Years Of Repayment Time. An Unsecured Business Loan, Meanwhile, Only Allows Up To 5 Years Of Repayment Time.

  11. Impact In Case Of Default: In Case Of A Secured Business Loan, The Impact Of Default Is Lower As Compared To That Of An Unsecured Loan. It Has To Do With The Impact Of Loss That A Lender Has To Bear.

  12. You Can Opt For Either One Of Them Depending On Your Requirement. However, It Is Important To Do Due Diligence Before Opting For A Loan As The Right One Can Propel Your Business To New Heights.

  13. Thank You !Would Love to Hear From You Hero FinCorp Limited 09, BasantLok, Vasant Vihar, New Delhi - 110057 Tel. 18001024145 Email Id: Corporate.Care@HeroFinCorp.com Website: https://www.herofincorp.com/ Know more- Learn About the Differences between Secured and Unsecured Loans

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