An important factor to consider when taking out a loan is whether the loan is secured or unsecured. Examples of secured loans are personal loans (secured on wages), car loans (secured on the car) and mortgage loans (secured on the property). Examples of unsecured loans are credit card balances and overdrafts. Having a secured loan is usually cheaper than an unsecured loan. Repayment Methods Most personal loans in Bahrain are amortised. The amortisation payment (installment) includes repayment of part of the principal and the month’s interest for the loan. The payment is a fixed amount and is due the same time each month. .
