Before you apply for a cheap secured loan to meet your financial needs, it is essential that you develop a working knowledge of some of the terms and terminology used by credit unions, insurance companies, banks and other financial institutions when they transact with you. The list of terms is long. However, we have chosen some of the more important terms as a starting point. Once you narrow your choices, please use our handy Information Request Form to receive a competitive price quote on the cheap secured loan of your choice. This loan glossary has several parts. Do take the time to read them to develop a better understanding of your role as a borrower.

Loan

A loan is a specific amount of money or funds that temporarily changes hands for a particular purpose and duration. The entity that provides the funds is called the lender. The entity that receives the funds is referred to as the borrower. Lenders make these funds available to borrowers for profit and as a purely commercial transaction for a stipulated period of time. The borrower is expected to return these funds to the lender along with additional funds. These additional funds are called interest. The original amount which changes hands is called the principle. We recommend that you review other terms in this loan glossary for a better understanding of how loans are made.

Secured Loan and Unsecured Loan

Lenders often tend to hedge their loan amounts and protect their funds with a guarantee. This guarantee is usually in the form of property although many other assets can also be used for this purpose. This asset on which the lender has the legal right to exercise ownership if the funds are not returned is called a collateral. If a collateral is associated with a loan, it is called a secured loan. If the loan is made to the borrower with no strings attached and no collateral, it is called an unsecured loan. Cheap secured loans strike a balance between the risk factor and the interest amount. Unsecured loans carry a higher rate of interest while secured loans carry a lower rate of interest. You will find other terms in this loan glossary which will help you arrive at a better understanding of the loan industry from a consumer's perspective. 

Once you complete researching the preferred loan of your choice after reading this loan glossary which explains the meanings of many of the relevant terms, complete the handy Information Request Form and submit it to us so that we can send you real good bargains on cheap secured loans.