Answer:
Unsecured personal loans typically have higher interest rates than secured loans. That's because lenders often view unsecured loans as riskier. Without collateral, the lender may worry you're less likely to repay the loan as agreed. Higher risk for your lender generally means a higher rate for you.
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The bank bears all the risk of the loan.
Step-by-step explanation:
The bank doesn't have a guarentee that you will be true to your word. With secured loans they are guarenteed because they have collatoral if you back out.
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