Personal loans are of two types: – secured and unsecured. The secured loans mean pledging of collateral against the loan amount. This mode is considered as appropriate mode for dealing with long term needs and desires. Usually, the lender accepts collateral that has good equity value in the market like land, home, etc. as a security for the loan amount.
Many lenders are available in the market who offer loan at reasonable rates to the borrowers. In this category, the lenders have to bear less risk as they have valuable asset to stand by, in case if they totally fails to repay the loan amount.