Loans & credit
Secured vs unsecured loan
Secured loans are backed by an asset like a house; unsecured loans have no collateral and cost more.
A secured loan is backed by collateral, like a home or gold, which the lender can seize if you default. This lowers their risk and your rate.
An unsecured loan, like a personal loan or credit card, has nothing backing it, so interest rates are much higher.
This is why a home loan might be 9% while a personal loan is 14% or more for the same person.
For example
A ₹40L home loan (secured by the house) is far cheaper than a ₹5L personal loan (unsecured), even for the same borrower.