What is difference between secured and unsecured loans?

or:What is difference between secured and unsecured loans?or:A secured loan is one which you borrow money against something of value you own, a good

or:What is difference between secured and unsecured loans?

or:A secured loan is one which you borrow money against something of value you own, a good example being a mortgage where the money is lent to you against your house. It offers saftey to the lender because if you for some reason can't pay, he can get back by selling the house (known as repossession). You however will benifit with lower interest payments for the reduced risk.Unsecured loans do not require an asset, but is against a legal contract between lender & borrower. This is a more expensive way to borrow due to the higher risk to the lender upon seeing his money back!

or:On a secured loan, a borrower promises an asset like a car, a home, a boat or jewelry as collateral for the loan. In an unsecured loan, interest is paid to a lender and no collateral item is required to secure the loan.

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