A collateral free loan is a loan provided to the borrower without any guarantee. In simple terms, this means, you can approach a lender and borrow money from him at a certain rate of interest even if you have nothing to pledge or invest.
Also question is, how can I get a collateral free loan?
A special type of
- Axis Bank.
- Bank of Baroda.
- Fullerton India’
- UCO Bank.
- State Bank of India.
- State Bank of Hyderabad.
- ICICI Bank.
- HDFC Bank.
One may also ask, what collateral means? The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender.
Likewise, what is collateral payment?
Collateral Payments means Eligible Funds paid by the Lender for the benefit of the Borrowers in respect to the repayment of the Loans, to the Trustee for deposit into the Collateral Fund pursuant to the Loan Agreements and the Indenture as a prerequisite to the disbursement of money held in the Project Fund.