What are the differences between Secured and Unsecured loans?

The main differences between secured and unsecured loans include:


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.


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?