Question

If loan have been guaranteed by managers and directors it is called as ___________________.

• A. Loan
• B. Unsecured Loan
• C. Secured Loan
• D. Advance by Manager & Director

Answer 1

The correct option is C Secured Loan

Loans are secured or unsecured. If any amount is funded by friend and relatives in good faith and on trust of the owner, these are considered as unsecured loan. Against these kind of loan, there is no security provided for.

Secured loans are those against which the lender demand the security. Loans against which a security is offered by the organization like any assets, are called as secured loan. If loan is guaranteed by the manager or director, these are called secured loan.