insured loans

Insured loans are loans that come with a guarantee from a third party, typically an insurance or government agency, that promises to cover the lender’s losses if the borrower defaults. This insurance reduces the lender’s risk, making it easier for borrowers to qualify for loans or get better terms, like lower interest rates. Common examples include mortgage loans insured by government programs or small business loans with credit guarantees. Essentially, it provides added security for lenders, encouraging lending while helping borrowers access funding they might not otherwise obtain.