Secured personal loans generally have lower interest rates and require you to use an asset to secure the loan.
This means that if for some reason you can’t make the repayments on your loan, you may have to give up the asset to help cover the outstanding balance on the loan. For example, if you take out a loan to purchase a car, you might use this car as security for the loan. You may also be able to use a motorbike, boat, caravan or money held in a Hume term investment as security for your loan.
Unsecured loans don’t require assets as security, but they usually have higher interest rates and stricter requirements in order to qualify.