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Secured vs Unsecured loans

QuestionsCategory: MiscellaneousSecured vs Unsecured loans
Ang Henry asked 4 years ago

Hi I will like to know the differences between the two. Thanks in advance.

Jieren Zheng replied 4 years ago

Just sharing my thoughts, a secured loan is where you offer something in collateral when you take the loan while an unsecured loan is without a collateral. Something like you pledge your house to take a loan is an secured loan, as compared to a credit card which is unsecured.

Generally, a secured loan has lower interest rate but if the company has excellent credit rating with the bank, they might be able to get an unsecured loan for a good rate as well.

2 Answers
Victor Chng Staff answered 4 years ago

Hi Henry,

Jieren had explained it perfectly.

 

Hi Jieren,

 

Thank you :)

Jieren Zheng replied 4 years ago

Welcome :)

Ang Henry answered 4 years ago

Thank you Jieren and Victor!