Secured and unsecured, so what’s the difference then?

1) Collateral

Secured: You would need a collateral or a guarantor for a secured loan.
Unsecured: Unsecured loans are collateral-free.

2) Rate of Interest

Secured: The rate of interest is low when it’s a secured loan.
Unsecured: The interest rates are much higher when it’s an unsecured loan.

3) Tenure

Secured: Secured loans usually offer a tenure ranging from 15 to 30 years.
Unsecured: Unsecured loans offer a tenure up to 5 years, on an average.

4) Processing Time

Secured: The processing time is longer than that of unsecured loans.
Unsecured: The processing time is less and the amount is disbursed much faster.

5) Loan Amount

Secured: You can avail a secured loan as and when you need a large amount.
Unsecured: Unsecured loans offer you an amount which is lesser than that of a secured loan.

While both the types of loans are well diverse, keeping the above points in mind, you can easily identify which loan suits your needs the best.