Secured Personal Loan:

 

 

Unsecured Personal Loan:

A Secured Personal Loan means that you will be providing the lender with security over the funds you wish to borrow. This allows the lender to offer you a lower interest rate than an unsecured loan, as the lender risk for the financier is reduced. This risk is reduced as, should the debt not be repaid, they are able to take what is offered as security to redeem their losses.

 

With an Unsecured Personal Loan you are not required to surrender anything for the purpose of collateral. Whilst someone may see a benefit that you will not loose anything but your Credit Rating should you fail to repay the debt, the interest rates for an Unsecured Personal Loan are much higher then those generated by a Secured Loan.