I cannot understand what a protected-equity loan is and how it is different from an equity loan. Please keep your explanation layman and easy to understand.
It's a research question for class, for high school. We are taught that there are five main ways for credit-financing:
- Credit cards
- Hire & Purchasing
Now within Loans, there are:
- Mortgage loans,
- personal loan,
- investment loan and
- equity loan.
The important one for this question; equity loan's is where the your equity in a certain asset is held as a collateral for the loan For example, a home-equity loan.
But what I cannot understand is, what is a "Protected"-equity loan and how is it any different from a normal equity loan?