When you need to borrow money, you will find two options with lenders, such as banks or other financial institutions. One option is the secured borrowing. In secured loans, you will provide security to the lender, and based on your security, and you get the loan. You can apply for larger amounts when it comes to a secured loan, and the payment carries a lower rate. Since a lender holds security against the loan, he is more confident that he will not lose his capital, if you fail to repay the loan. A lender can sell your held collateral and recover his lending.
By unsecured, we mean any loan that does not provide any security to the lender. If you apply for the unsecured loans and get approval from the lender, you will get the lending without giving any collateral to the banks or other lenders.
