WHERE LIES THE BEAUTY IN SECURED AND UNSECURED LOANS?
The beauty to a Secured loan lies in the fact that it affords the borrower the opportunity to gain access to a larger sum of money to meet the financial obligation for which the loan was applied and sought for.
This type of loan is meant for serious minded individuals (borrowers) seeing their collateral is at stake in the event there is a defaulting in the loan repayment.
It also helps keep the borrower focused and serves as a prod in ensuring the borrowed funds is well utilized and managed for the said reason and purpose the loan was applied for.
On the other hand, the beauty to an Unsecured loan also lies in the fact that it affords the borrower an opportunity to put a limit or peg the amount applied for.
Unsecured loan is usually applied for in solving immediate needs or financial needs that are not so capital intensive a project or an undertaking.
It helps prevent and cautions the borrower from over subscribing to the loan applied for seeing there is a limit to which money can be loaned before you are requested to deposit or tender any valuable asset as collateral.
Whether you swing low or swing high, there is always a loan tailored and well suited to meet any particular financial need or emergency that may arise at any given time- both Secured and Unsecured loans help take care of these, and that's where the beauty lies.
Both Secured and Unsecured loans are meant to be paid back when applied for and granted.
Trying to outsmart, outwit or circumvent the loan repayment process (Lender getting back the loan borrowed out) is bad to say the least and should not be considered an option. This is a fraudulent act which should be frowned at whenever such a thing happens.
You not only stand the risk of getting prosecuted and charged to court, in addition you jeopardize opportunities for a loan consideration (whether a secured loan or an unsecured loan) in the event you require one in the future...