NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Debt Management and Loans
Which of the following is generally treated as a secured loan?
A loan against a fixed deposit is a secured loan because the deposit is pledged as collateral to the lender. Credit card dues, personal loans without collateral and buy-now-pay-later balances are unsecured, as they depend only on the borrower's creditworthiness.
- ACredit card outstanding
- BPersonal loan from a bank without collateral
- CLoan against a fixed depositCorrect
- DBuy-now-pay-later balance without collateral
Explanation
A secured loan is backed by collateral. A loan against a fixed deposit is backed by the deposit itself. The other options are unsecured, relying on the borrower's creditworthiness alone.
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