Difference between secured and unsecured loan

Difference between a Secured and Unsecured Loan

“Do not save what is left after spending….but spend what is left after saving.”
-Warren Buffett.

What is a Secured Loan?

A secured loan is a loan given by the financial institutions where assets are collateral for security for the loan. One can use the house, gold, machine, etc. to avail a loan amount, which is equivalent to the asset value. In the case of a secured loan, the financial institution or bank will hold the ownership until the loan is paid off.

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Unsecured Lending

What is unsecured lending and how does it work?

“Financial freedom is a mental, emotional, and educational process”.
-Robert Kiyosaki

First, let’s understand what loan means?

In simple words, the loan is when you receive money from a friend, bank, or financial institution in exchange for further repayment of the principal, plus interest and tenure duration. The principal is the amount which you have borrowed; interest is the amount charged for receiving the loan, and tenure is the time duration of the loan.

Classification of loan.

Loans are divided into two categories

  • Secured loan
  • Unsecured loans

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Gold

Digital Gold a smart way to invest in Gold

“Opportunity is missed by most people because it is dressed in overalls and looks like work”.
-Thomas Edison

We all know that for Indians gold is a hedge or an investment option. For us, gold is an important part of our culture and traditions. People in India prefer the pure variant of yellow metal i.e the 24K gold for the investment purpose. Just like your home, which is most of the time not an investment but it is handed over from one generation to another, gold is also possession and precaution during emergencies where gold is one of those assets that can help in your rainy days.
However, with time the methods of investing in gold have changed. And nowadays people prefer to invest in Digital Gold if the prime motto is an investment.

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direct-vs-regular

Difference between Direct & Regular Plan Mutual Funds

“One of the only ways to get out of a tight box is to invest your way out.”
-Jeff Bezos

A Mutual Fund is divided into two categories:

  • Direct Plan Mutual Funds
  • Regular Plan Mutual Funds

And in this topic, we will dive deeper into these two broad categories to understand how they work and who should invest in them.

Direct Plan Mutual Funds

The Securities And Exchange Board Of India (SEBI) introduced Direct Plan Mutual Funds in January 2013 making is compulsory for all the Asset Management Companies (AMCs) to provide an option to invest in Mutual Fund scheme directly. When an investor invests in a Mutual Fund directly with an Asset Management company(AMC) without the help of any broker, distributor, banker or any kind of intermediary, that is known as Direct Plan Mutual Fund. One can apply to Direct Plan Mutual Fund just by visiting the Mutual Fund house or visiting the company’s official website or through an online app such as Finity that provides the option on investing online.

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stock market

Get to know more about Stock Market and Index

“Patience is the key element of success.”
-Bill Gates

What are the stock indices?

A stock index is a statistical measure that shows the changes happening in the stock market. The criteria for selection of stock could be the type of industry, size of the industry, and market capitalization. The value of the stock market index is to be calculated using the values of the underlying stocks in the market. If any changes happen in the underlying stock prices it will impact the overall performance of the index. If the price of the underlying security falls the index will also fall and that could be also vice versa. In this way, a stock reflects the overall market view and direction of price movements of the financial products and commodities in the market.

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