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What to look for to take a loan against a security?

Submitted by HereiithE on Sun, 10/20/2019 - 23:24

I am getting a loan at a good rate but they are saying that I need to keep something as security? Is it a good move to do so? Is there any chance of losig the asset I am keeping? What should I check in the terms and conditions? I stay in Minnesota.

Okay. What kind of loan is this? Is it a personal loan or a business loan? How much are you planning to borrow? Do you have assets that you can pledge as security? The lender is offering you a secured loan. In the event of loan default, you will lose the asset pledged as a collateral against the loan. Read the loan agreement in detail, especially the fine print section. Check out the interest rate on the loan, fees, penalties, payments, etc.

Personally, I don't like secured loans because there is always a chance of losing the asset.

Submitted by Nick Jonas on Mon, 10/21/2019 - 03:35

Nick Jonas

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