Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
All of U
Unsecured Loan
A loan where the lender has no entitlement to any of the borrower's * assets in the event the borrower fails to make the loan repayments. Such a loan normally carries a higher * interest rate than a * secured loan.
Glossary For This Page
(In Alphabetical Order)
* Asset
Everything of value an individual owns, such as cash, securities, real estate (home, property), investments, etc.
* Default
Failure to perform a legal obligation. A default includes failure to make the payments on a financial obligation, but may also be a failure to perform some action or service that is non monetary (not relating to money).
* Interest Rate
The percentage of a sum of money charged to the borrower by the lender for borrowing the lender's money.
* Secured Loan
A loan where the borrower (you) offers a collateral (asset, your home) to which the lender has access in the event of the borrower (you) fails to make the loan repayments. Your home would be considered security and, therefore, can be claimed by the lender if * default occurs. Secured loans are as the name suggests, secured on your home.
|