Secured vs Unsecured Loans: Choose Wisely for Your Financial Future

• Secured loans require collateral (house, gold, FD), offering lower interest rates (8-12%), larger amounts, and longer tenures.
• Unsecured loans have no collateral but higher interest rates (12-30%), smaller amounts, and shorter tenures, relying on income and CIBIL score.
• Secured loans are ideal for long-term goals like home or car purchases, with easier approval even with a moderate credit score.
• Unsecured loans are suitable for emergencies (weddings, medical needs) due to quick disbursal and no asset pledging.
• Always compare interest rates, processing fees, and prepayment charges; ensure EMIs do not exceed 50% of your income.

Why It Matters: Understand the differences between secured and unsecured loans to make informed financial decisions.