There are a lot of reasons in buying a certain a product and sometimes we buy things which are not really necessary. One great example for emotional consumer motive in when we buy food because we need them to survive in this world.
Answer:
is not connected to collateral and, therefore, a higher risk for lenders
Explanation:
Unsecured loans are the loans issued without any securities attached to them. The lender relies on the borrower's creditworthiness as the basis for granting the loan. Unsecured loans are mostly available to salaried workers whose pay is processed by the lending institutions.
Unsecured loans pose a higher risk to the lender because they are not backed by any collateral. For this reason, they attract a higher interest rate than secured loans.
<span>$5950 / $85000 = 7% + 2.8% = 9.8%</span>
This accusation is incorrect.
