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Secured loans require that you offer up something you own of value as collateral in case you can't pay back your loan, whereas unsecured loans allow you borrow the money outright (after the lender considers your financials).
The lender decides a fixed rate of interest that you must pay on the money you borrow, along with the principal amount borrowed.
Types of secured loans
Home loan Loan against property (LAP) Loans against insurance policies. Gold loans Personal loans Loans against mutual funds and shares Loans against fixed deposits Personal loan Short-term business loans.