Question

question 6
0.25 pts
elliott renovates his home using a loan that requires him to sign over the title to his car if he doesnt pay as promised.
what type of loan does elliott have?

unsecured loan

interest - free loan

education loan

secured loan

Explanation:

A secured loan requires collateral (an asset the lender can claim if the borrower defaults). Here, Elliott's car title is collateral for the home renovation loan. Unsecured loans have no collateral, interest - free loans have no interest (not related here), and education loans are for education (not home renovation). So the loan is secured.

Answer:

D. Secured loan (assuming the options are labeled A - D as: A. Unsecured loan, B. Interest - free loan, C. Education loan, D. Secured loan)