Various Types of Securities: Jaiib/DBF Paper 3 (Module B) Unit-10

Various Types of Securities: Jaiib/DBF Paper 3 (Module B) Unit-10

Dear bankers,

As we all know that is Various Types of Securities for JAIIB Exam. JAIIB exam conducted twice in a year. So, here we are Various Types of Securities (Unit-10), Legal Aspects of Banking Operations (Module B), Legal & Regulatory Aspects of Banking -Paper 3.

♦Unsecured loans & secured loan

Unsecured loans

• Unsecured loans are loans that are approved without the need for collateral. Collateral is when you pledge an asset to secure a loan. With an unsecured loan, instead of pledging assets, borrowers qualify based on their credit history and income.

 Secured loan

• A secured loan is a type of loan in which a borrower pledges an asset such a car, property, equity, etc. against that loan. The loan amount made available to the borrower is usually based on the value of the collateral.
• If in case the borrower defaults the loan, the lender can liquidate the asset and recover the loan amount, making these loans risk-free for the lender. As a result, these loans are easier to obtain and charge a lower interest rate than an unsecured loan.

Types of secured loan

Usually a secured loan can be availed against the following types of collateral:

• Real estate, including any financial equity earned since purchasing the residence
• Bank accounts such as savings accounts and fixed deposits
• Commercial and residential property
• Private vehicles
• Stocks, mutual funds, or bond investments
• Insurance policies, including life insurance
• Precious metals, high-end collectibles, and other valuables

♦Various Kinds of Securities

• Land/Real Estate
• Stocks and Shares
• Debentures
• Goods
• Life Policies
• Gold Loan
• Book Debts
• Fixed Deposits
• Supply Bills
• Vehicle Financing

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