Question

What is the difference between the conditions of secured and unsecured loans?

Question options:

Collateral is required from the borrower for secured loans; no requirement for collateral is required for unsecured loans.


Larger down payments are required for secured loans; smaller down payments are required for unsecured loans.


Longer payment schedules are associated with secured loans; shorter payment schedules are associated with unsecured loans.


At least two cosigners are required for secured loans; only one consigner is required for unsecured loans.

Answer 1

if you are approved for a secured loan, a lender will put a lien on an asset until the loan is paid off. An unsecured personal loan, by contrast, does not require any collateral. Examples of unsecured loans can include credit cards, student loans, unsecured personal loans, and unsecured personal lines of credit.