Yusra3
VIP Contributor
Secured and unsecured loans are two types of loans that you can take out to help pay for your education or your business. Secured loans are secured by the value of the property you own, while unsecured loans aren't backed by anything.
1. Secured Loans
A secured loan means that you pledge some other asset as collateral for the loan--in most cases, this means your home. If you don't repay the loan on time or in full, then your lender can take possession of this collateral and sell it at auction to repay their debt. This means that if you don't make payments on time, then you could lose everything in your home!
2. Unsecured Loans
Unsecured loans are not secured by any form of collateral, which means that you don't have anything backing up your loan. You'll need to find someone willing to give you money based on their perception of your ability to pay them back!
1. Secured Loans
A secured loan means that you pledge some other asset as collateral for the loan--in most cases, this means your home. If you don't repay the loan on time or in full, then your lender can take possession of this collateral and sell it at auction to repay their debt. This means that if you don't make payments on time, then you could lose everything in your home!
2. Unsecured Loans
Unsecured loans are not secured by any form of collateral, which means that you don't have anything backing up your loan. You'll need to find someone willing to give you money based on their perception of your ability to pay them back!
