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The difference between a secured loan and unsecured loan is that the secured loan is

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Answer:

has a lower interest rate

Step-by-step explanation:

User Dvdblk
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Answer:

Step-by-step explanation:

A secured loan is a type of loan on which the borrower uses some assets for collateral . That means it is secured on the assets in the case of any default in terms by the borrower.

An unsecured loan on the other hand is a type of loan that is not secured on any assets . The risks related to this type of loan is higher as there is no security to cover or minimize the loss in the situation of a default in terms.

Looking at the definition given above , the difference between a secured and unsecured loan is that assets are promised by the borrower as security over a secured loan , hence the cost can be lower while in the unsecured loan , no asset is promised as security and the cost can be higher

User Vamsi Tallapudi
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