The main differences between secured and unsecured loans include:
Secured
A secured loan requires an asset to secure the loan against —usually this is your property in order to get a secured loan
- They tend to be for larger amounts.
- Tend to be over a longer period of time.
- Can result in lower interest rates.
Unsecured
Do not secure the loan against your assets.
- Typically these are for smaller amounts ranging from £1,000 – £25,000
- Tend to be for a shorter period of time.
- Interest rates may be higher than a secured loan
To find out more about the difference loan types, read our guide, What is a secured loan?