Secured Loans
your money your hands
Secured Loan- Wherein the loan involves the attachment of collateral - say, your property or any fixed/movable asset- against the sum of money borrowed. You risk losing your home should you default on repayments.
UnSecured Loan- Here the loan is not secured against the loan amount borrowed. But consequently the lender would be charging a higher rate of interest, taking into account the high risk involved in lending the sum. Here, failure to make regular payments would see the lender fall back on the credit agreement, and resort to legal claims to make good the loss incurred.