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These usually include credit cards and other lines of credit. Closed-ended loans grant borrowers a specific balance that does not renew once repaid. Secured loans rely on an asset as collateral. A car title cimb cash advance malaysia would be an example of a secured loan. If a borrower defaults on a secured loan, the lender can take possession of the asset to cover the loss of the loan. In the case of an auto title loan, the lender would take possession of the vehicles title if the borrower defaults on the loan.
Unsecured loans do not require collateral; however, they do charge higher interest rates. The borrower must also pay any fees outlined in the agreement.
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