Difference Between Unsecured And Secured Loans

What is the difference between unsecured loans and secured loans? Which is safer between the two? I needed to make a research for my husband is planning to get a personal loan. I was hesitant at first but he explained that it is alright to get loans as long as we know how to handle our obligations. He said that even rich people like businessmen are looking for financing options like business loans. Besides, we really need it for it is hard to make ends meet because of this world wide economic problem.

We both made the research and found out that unsecured loan is a safer way to borrow the money for it requires no collateral while a secured loan is a collateralized loan whereas property is pledged as collateral. Also, unsecured personal loan is convenient because it has little documentation and upon approval of the loan, the fund can be available within two business days. All we need are responsible credit history and a high credit rating. Because of this, we decided to go for the unsecured loan. I will keep my fingers crossed and pray for my husband’s loan to be granted.

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