While taking out a loan, you have many decisions to make one of the most important to be considered is whether to go for a secured, apprehensive or a safe and secure loan. There are numerous advantages with a secure loan. Firstly, they will get approved easily.
It is because the lenders will be at less risk by giving their money to you due to security offered. But you will lose an option of your house to be reused later. You are putting all your assets and property on risk with that kind of loan. With that kind of secured loan you are putting your children’s and family future at risk. You are risking your options, and you will be left with limited kind of options to opt later.
There are some disadvantages also, one of the major disadvantage in this regard is that lender will be able to take control of your property mostly your house if you are not able to give repayments. Mostly borrowers don’t want to take that kind of enormous risk. Let’s suppose, if you are starting a business but its success can’t be guaranteed. If you have a family with young children then it would be a very bad idea to get a loan for your business over you home.
So, an unsecured or apprehensive loan would be secured for you now. Unsecured loans are still available to someone with good regular income and good credit history although they are tough to get approved. The conditions may be partially unfavorable for you and the rate may also be higher. Higher rate means that you have to give higher repayments over a long time. But you’re not risking your house!
If the loan is unsecured then you should remember one thing that you are still having full amount and if you are not able to repay it or you are made bankrupt then all your assets including your home are still there for an extra option for you without any risk. So, taking unsecured loan is a better option to save you and your family future.