Secured Loans vs. Unsecured Loan

We all have the moment where we’d need to borrow money – and it could be for any reason. It might be because of a vacation you have planned, it could be to put funds on your emergency fund, or it could be your desires of starting a business.

With that, all borrowers need to make a decision when they’re about to borrow money – the decision of taking secured loans vs. an unsecured loan? Both of them are the same and they’ll give you funds but they largely differ in terms of how they’re setup and how they are in the long-run.

What are secured loans? What are unsecured loans? What’s the difference and how are they the same? In this article, we’ll do our best to define and differ each of them as well as give you some of the best options to take.

What are Secured Loans?

Secured loans, in the simplest terms, are the type of loans that involves security that is usually through a collateral. A collateral could be any asset or property – it could be a house, land, lot, car, or even jewelry. So long as it holds value, it can be considered as collateral.

This involves risk to the borrower because of the collateral.

What are Unsecured Loans?

In contrast to secured loans, unsecured loans are the type of loans that does not involve security. The funds will be dispersed and released to the borrower even without security or a collateral in place.

This involves risk to the lender because there’s not collateral.

Secured Loans vs. Unsecured Loans?

So what’s better? Secured loans or unsecured loans? It really depends on how much you’re looking to loan or what you’ll be using the money for. Secured loans have some type of risk to the borrower because of the collateral but usually, secured loans have:

• Lower interest rates
• Flexible repayment terms
• Longer repayment periods

An unsecured loan, on the other hand, is a risk to the lender and it most usually involves:

• Higher interest rates
• Negotiable repayment terms
• Shorter repayment periods

So what you will get will be dependent on the severity of the importance of the funds. Which side would you be in? An Unsecured loan vs. Secured loans? No matter what type of loan you’ll apply to, it’ll both give you what you need – funds.

And here with us at SoFlo Funding, we can just give you any loan you wish to have. We help people who are looking for loans for personal uses and emergencies, businesses and small businesses that need funding, and we can give it to them with or without a collateral on the line!

SoFlo Funding’s Secured Loans

If you decide to apply for SoFlo Funding’s secured loans, you can enjoy the benefits of paying low interest rates and in some cases – we don’t charge interest rates on the first 9 to 16 months of the loan! We have faster and more convenient approval rates and the fund dispersion is faster than how most people expect it!

You can apply through our secured loans through our website without having to leave the comfort of your own home! The application process is about 10 minutes – you can get pre-approval right after!