Equity loan
According to the dictionary Equity Means :
1 - fairness
2 - principles of justice used to correct or supplement the law
3 - a value of the shares issued by a company.
4 - stocks and shares not bearing fixed interest.
But in Financial terms we use equity word as a current value of the asset in the market an ability to convert into cash.
So Equity loan means that any loan which is issue against any security.
Like you applied for home equity loan. Home equity (which you want to purchase from Loan) will be secured against you loan. You can live in that house you can also rent it out but you can't sale that hose which is secured against your loan.
Equity loans are very famous and lender and borrower both like to go for a equity loan. Lender get the security and borrower get the loan approved quickly and he can fully utilize the property. If borrower pays the installments on tome and after specified period, when loan was cleared, property will be transfer to borrower name and he can sell it anytime he want.
Equity loans have many benefits. Like You can at a time using the asset and its equity provide the security to the loan. If you have a bad credit history and you want to get the loan equity loan can helps you get the loan. You pay your installments on time and your bad credit history will automatically improved