A secured loan is a loan where the borrower provides an asset (e.g. a car or property) as security for the loan. This may be provided by a partner or relative who would become a party to the loan as a co-borrower or guarantor. Providing good security allows you to borrow up to in some instances 100% of the value of the asset and will reduce the interest rate on your loan.

An unsecured loan is when there is no requirement for you to provide any collateral or security for a loan. Typically, this means that the amount you can borrow is less and the interest rate charged is normally higher. To qualify for an unsecured loan you must be in stable employment with sufficient income and have no prior adverse credit history.