Bank’s Secured & Unsecured Products

Personal loans, credit cards, auto loans, mortgages, overdrafts, SME trade & corporate loans etc.
An unsecured loan differs from a secured loan, which requires the borrower to pledge some form of the asset as insurance.

Unsecured Debts

Unsecured debt has no collateral backing and, as the term implies, requires no security. If the borrower fails on this form of debt, the lender must file a lawsuit to recover the debt. In an unsecured loan, lenders offer funds based simply on the borrower's creditworthiness and commitment to repay. As a result, banks often demand a higher interest rate on these "signature loans." In addition, credit score and debt-to-income requirements are typically tighter for these loans, and they are only available to the most trustworthy borrowers. Medical bills, certain retail installment contracts such as gym memberships, and outstanding credit card amounts are examples of unsecured debts outside of bank loans.

Secured Debts

Secured debts are those for which the borrower pledges an asset as a guarantee or collateral. A secured debt instrument simply means that the lender can use the asset to repay the monies it has advanced to the borrower in the case of default. Mortgages and vehicle loans are examples of secured debt, in which the item being financed serves as collateral for the loan. The property in question is used to back the repayment terms when an individual or business takes out a mortgage; in actuality, the lending institution retains equity (financial interest) in the property until the mortgage is paid in full. If the borrower fails to make payments, the lender has the right to take the property. Most consumers find secured debt finance to be easier to get. Because private lenders pose a lower risk to the lender, interest rates are often lower than unsecured loans.