Looking at loans as financial products, we look at two main types of loans. We have some which are secured loans and others are unsecured loans. Between the two loans there are some differences. The main difference among the two types of personal loan is with secured loan the money borrowed is secured against an asset or a property. This asset acts as a security against the amount you have borrowed. With unsecured loan, you are not supposed to offer any security as guarantee. Also both loans entail different interest rates and repayment terms. Secured loan needs the borrower to provide some form of collateral or security to the licensed money lender. You can decide to allow the lender to lodged a caveat on your private property. What you need to understand about secured loan is that, if you fail to repay the loan after the agreed period, the lender will receive the money once you sold your private property. The advantage with secured loan is that, you have an option of borrowing huge amounts and the interest rates are low. The loan is also easier to obtain compared to unsecured personal loan Singapore. The asset or the property you offer as collateral will in some way determine the amount of money you can borrow. The common reason why many people take secured loans is to consolidate debts because their interest is low. On the other hand, with unsecured loan there is no security required when borrowing money. This means you cannot lose your car or house if you fail to pay. The moneylender lends you money based on your credit history and your income. Personal loans, payday loan, student loan and credit card debts are some examples of unsecured loans. The most important thing to note is that unsecured loan always has higher interest rates than secured loans.