Ang Henry asked 6 years ago
Hi I will like to know the differences between the two. Thanks in advance.
2 Answers
Victor Chng answered 6 years ago
Hi Henry,
Jieren had explained it perfectly.
Hi Jieren,
Thank you :)
Jieren Zheng
replied 6 years ago Welcome :)
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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.