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A security interest occurs when used as collateral, so in collateral, but other types of property can be used as collateral for loans as well.
It may also mean that some unsecured loans will have higher interest rates and less time to repay the sum compared to secured loans. Borrowers are lent money based on their credit report , application details, and various other factors. Typically, when taking out an unsecured loan, the lender will use your credit history to determine how much they may be willing to lend. What is a secured loan?
