Payday Loan | Cash Advance

     A loan is a financial agreement in which a lender gives a borrower a certain amount of money, in which the borrower will repay within a certain amount of time. In other words, it is a temporary redistribution of financial assets. In many cases, the loan may be paid back in small regular installments called payments. The lender may ask for interest payments on the loan, and may assign penalties for late payments. There are two types of loans, secured and unsecured.

     A secured loan occurs when the lender is given a lien, or security interest, to the thing that is being purchased until the loan is fully paid off. If the borrower ever opts out of the loan, the lender would have the right to repossess the item and sell it. One example of a secured loan is a mortgage. In a mortgage on a house for example, the bank is given a lien on the title of the house until the debt is fully paid off. Another example of a secured loan is a loan on a new or used car. This type of loan if different than a mortgage on a house, however, because the life of a car is much shorter than the life of a house. Therefore, the amount of time a borrower has to pay back a loan on a car would be shorter than that on a house.

Check out http://en.wikipedia.org/wiki/Loan for more information about secured loans.