Collateral is an item of value an individual possesses like jewellery or real estate which can be accepted by the lender as security for provisioning of loans. These are termed as security since these can be used by the lender to recover the money lent as loan.
In case of a default in payment by the borrower, the lender can seize the collateral and sell it to make for the loan amount. Different types of loans accept different kinds of assets as collateral. The interest rates of loans secured through collateral are lower than the unsecured loans.
Points to remember:
Example: If you take a car loan from a bank, then the car purchased becomes the collateral for the acquired loan. In case you default on the loan payment, the car may be seized by the bank to make up for the money lent.
Personal Loan EMI Calculator
Skip the manual calculations. Use the EarlySalary EMI Calculator to accurately determine your repayment amounts, interest charges, and more.
EarlySalary's personal loan EMI calculator is your reliable tool to determine your loan EMI in just a few minutes and some simple steps. EarlySalary offers personal loan of up to Rs 2 lakhs with minimal documentation and quick processing. Coupled with interest rates as low as Rs 9/day, this is by far your most compelling credit option in the market. Calculate your monthly repayments based on your sanctioned loan amount and interest rates using this handy EMI calculator that's operate and easy to understand. With EarlySalary, you can even prepay your loan amount with no additional charges.