Secured Loans
A secured loan is a typically a loan in which the borrower pledges their property as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. Interest rates for secured loans are lower than their unsecured counterparts, and are a popular financing option for solar energy systems.
Unsecured Loans
An unsecured loan is not secured by your property, and although interest rates tend to be higher that secured loans, they offer an affordable alternative. Banks will often offer benefits for solar energy financing such as no closing costs, no pre-payment penalties. Interest on an unsecured home improvement loan is tax deductible.