The major types of loans that are commonly secured from financial agencies are secured loans and unsecured loans. Secured loans are granted on the provision of a collateral or security which considerably lowers the risk undertaken by the creditor. The collateral is usually a house or landed property or real estate. These loans that are secured using real estate or property as collateral are called mortgage loans. The unsecured loans on the other hand are high risk and often are for short periods of time and come with exorbitant interest rates. The difference between a commercial mortgage loans and an ordinary residential one is that the former utilizes commercial or business property and real estate instead of residential property to secure the loan.You would use a commercial loan in a lot of cases, including when you needed to build a factory or some other type of building. If you needed to grow your business by building a new office building, you would use this type of financing to pay for the building. If you needed to buy more land to build a larger factory, you would also use this type of loan.Unsecured loans offer higher risk to the creditor and secure loans mean lower risk levels due to a collateral or security in place. The secured loans hence are usually of lower interest rates while compared to unsecured ones and have a longer term for repayment in small sums. Commercial mortgage loans are applied for by businesses and commercial establishments such as corporate or partnerships rather than individual entrepreneurs.The eligibility for these loans are difficult to assess in that there are not credit ratings available for most commercial establishments unlike individuals whose credit ratings can be procured from agencies such as Equifax and Experian which makes the assessment procedure rather complicated.The drawback that these loans have is that they do not offer additional way in which the debtor can secure the loan amount or debt owed in total from the debtor owing to there being restrictions with respect to certain statutes and enactments which allow only the collateral to be liquidated towards repayment of the loan in case the debtor defaults on repayment. Because of this hindrance most lenders agree beforehand with the debtor to be fully paid the whole repayment amount from other sources in addition to the liquidation of the collateral.The usual term of these loans are longer that others and extend up to twenty or thirty years at a stretch. The balloon tenure is the duration within which a full repayment has to be made and can be called the actual term of the loan.Such loans are secured for purposes such as purchase of commercial or business property, expansion of such property or development of the already acquired property. There are numerous criteria that determine eligibility for these loans which include among others the credit rating of the business owner and also the long term projections for the organization in terms of profitability and revenue. These loans invariably carry high interest rates than residential mortgages.