In NZ, you can find a secure loan and unsecured loan options, and you can opt for anyone depending on your need and situation. In a secured loan, you will have to provide assets as collateral to the lender. A secured loan gives security to the lender so you can get these loans at lower rates. The secure option is ideal for people who hold collateral to offer as security and seek significant borrowings such as mortgages or equipment financing. If you want a personal loan and do not own any collateral, you can apply for an unsecured loan in NZ.
As stated earlier, in the financing, the term unsecured means any financial disbursement that does not provide a lender any security or collateral in the shape of assets or deposits. The lender takes a higher risk with unsecured loans as if the borrower is unable to make the payment later; the lender has no assets of his in hand to make the recovery of his lendings. In a secure loan, for example, a car loan, the lender can repossess the vehicle if it is not paid off by the borrower. Unsecured loans provide no such security to the lender.