Unsecured vs Secured Loans: Which One is Right for You?

When looking to borrow money, you will primarily choose between two categories of credit: secured and unsecured loans. Knowing the difference between them is vital to picking the right borrowing structure:

• Secured Loans: Require collateral (e.g. property, gold, or fixed deposits). If you default, the lender can liquidate the asset. Offers lower interest rates and higher tenures.
• Unsecured Loans: No collateral required (e.g. personal loans, instant credit, student loans). Lenders evaluate CIBIL and salary. Features higher interest rates and strict eligibility.