Have you wondered why loans are important? Yes, because it gives you financial support at any time. If you need money urgently for emergency purposes, you can borrow cash from anyone, but you need to pay high interest. But when you apply for a bank loan, you do not need to pay high interest. You can get sufficient time to repay your loan with a low-interest amount. You can apply for instant loans online during critical circumstances that may occur uncertainly.
We all know that banks and financial institutes provide different types of loans for various purposes, such as for further education, buying your dream home or a dream car, medical emergencies, home renovation, marriage, etc. And you can apply for these different types of loans using a loan app personal.
But do you know how many primary types of loans there are? There are two major types of loans: secured and unsecured. And here, we will discuss secured loans and their various types.
So, what are secured loans? Secured loans are protected by collateral security, as the borrower has to pledge any of his assets. It is because if you cannot repay your loan in the future, then the lender has your asset to back their money. Banks charge low-interest rates for loans requiring collateral compared to loans without collateral. Today, various business loan apps are available that provide secured loans to borrowers at low-interest rates.
Now we will discuss the types of secured loans you can apply for online using personal loan apps India? Following are four different types of secured loans anyone can get at low-interest rates;
Home loan –
A home loan is a type of secured loan. If you want to buy or build your house but do not have enough funds, then you can apply for a home loan using an online loan app. If you cannot pay back your loan, then banks or financial institutions have the right to repossess your property; it can be used as collateral security. So, make sure you are paying your loan EMI on time before the due date.
Loan against property –
As the name says, a loan against property means the borrower can pledge any of his residential, commercial, and industrial property to avail of an emergency loan. So, you are getting a loan against your property. It is one of the common types of secured loans that anyone can apply for to fulfill the urgent fund requirements.
Loan against insurance policies –
You can also get an urgent loan against your insurance policies instead of property. But all insurance policies are not qualified to avail of this type of secured loan. So you should check the eligibility criteria before applying for a loan against the insurance policy.
Gold loans –
Yes, you can also avail of urgent loans against your gold jewelry. So you need to pledge your gold jewelry and coins, and you can get an urgent loan.
So, these are the four major types of secured loans you can apply for online using an online loan app.