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Basically there are two types of lenders, they are:- Secured Lender Unsecured Lender. Secured Lender. Secure Lenders are those who lend money to any borrower by taking something as a guaranty for that loan. That guaranty can be anything. It can be a movable property like car or unmovable property like house etc, whose ownership is with the borrower. In case if the borrower is not able to repay the loan as decided then the ownership of that particular property will get transferred to the lender.
Hence these kinds of loans have lower interest rate as compared to that of others loans. Unsecured Lender. On the other hand unsecured lenders are those who lend money to their borrower without taking anything as guaranty.