What are the differences between Secured and Unsecured loans?

The main differences between secured and unsecured loans include:

Secured Loans
A secured loan requires an asset to secure the loan against —usually this is your property in order to get a secured loan • Tend to be for larger amounts. • Tend to be over a longer period of time. • Can result in lower interest rates.

Unsecured Loans
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?

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