Whether you’re borrowing for something personal or practical, the choice between secured and unsecured personal loans can shape your rate, repayments, and flexibility.
What’s the Difference?
Secured Personal Loans
A secured loan uses an asset — such as a vehicle, boat, caravan, or term deposit — as collateral for the loan. This lowers lender risk and can unlock better rates and higher loan amounts.
Perfect for:
Key features:
Unsecured Personal Loans
An unsecured loan doesn’t require you to use an asset (like a car or savings) as security. Approval is usually based on your income, credit score, and repayment history.
It’s quick, simple, and ideal for smaller or short-term goals.
Perfect for:
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Debt consolidation
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Lifestyle and event expenses
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Travel, medical, or education costs
Key features:
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No asset required as security
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Loan terms: 12–84 months
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Fast approvals with minimal paperwork
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Slightly higher rates (due to no asset security)