What is the difference between Protected-equity loan vs Equity loan?

Question

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:

1. Credit cards
2. Overdrafts
3. Hire & Purchasing
4. Leasing
5. Loans.

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?

Answer 1

In simple terms :

Equity Loan is money borrowed from the bank to buy assets which can be houses , shares etc

Protected equity loan is commonly used in shares where you have a portfolio of shares and you set the minimum value the portfolio can fall to . Anything less than there may result in a sell off of the share to protect you from further capital losses.

This is a very brief explaination , which does not fully cover what Equity Loan && Protected Equity Loan really mean