Which of the following is NOT a correct statement about Loans?
Which of the following is NOT a correct statement?
[A]Interest rates on unsecured loans is higher than the secured loans
[B]Mortgage Loan is a kind of secured loan
[C]Credit Card is a kind of secured loan
[D]Unsecured loans are given out on the basis of credit worthiness of the borrowers
Credit Card is a kind of secured loan
In unsecured loans, the borrowers assets are not pledged as collateral. Examples of such loans are personal loans, education loans, credit cards etc. They are given out on the basis of credit worthiness of the borrowers.