Kissht: Secured vs. Unsecured Personal Loans: Which one should you choose?
                     
What is a Secured Personal 
Loan?
A secured personal loan requires
 the borrower to provide collateral, 
such as a home, car, or savings 
account, to secure the loan. If you 
fail to repay the loan, the lender 
can seize the collateral to recover 
the owed amount. Since these 
loans are backed by an asset, they
 typically come with lower interest 
rates compared to unsecured 
loans.
Advantages of Secured 
Personal Loans:
1.Lower Interest Rates: With the security of collateral, lenders usually 
offer more favorable interest rates.
2.Higher Loan Amounts: If you need to borrow a larger sum, secured 
loans are often more suitable.
3.Better Approval Chances: Providing collateral can improve your 
chances of approval, especially if your credit score isn’t stellar.
What is an Unsecured 
Personal Loan?
An unsecured personal loan, on 
the other hand, does not require 
any collateral. The lender will 
assess your creditworthiness, 
income, and financial history 
before deciding to approve the 
loan. These loans typically come 
with higher interest rates since 
there is no asset backing the 
loan.
Conclusion
Choosing between a secured or unsecured 
personal loan depends largely on your 
individual circumstances. If you need a larger 
loan and have valuable assets to  off er, a 
secured loan could be a good option, 
especially if you’re looking for  a low- interest 
loan. However, if you prefer not  to  risk any of  
your personal assets and need a quicker and 
more flexible loan option, an unsecured 
personal loan might be the better choice for 
you. For those seeking quick and instant loans 
without  the need for  collateral, platforms like 
Kissht off er a convenient cash loan app that  
provides access to  instant personal loans.