SECURED VS. COLLATERAL-FREE LOANS: UNDERSTANDING THE DIFFERENCE

When requiring a loan, one of the most crucial determinants is whether it's secured or collateral-free. A secured loan necessitates collateral, which is an asset the lender can seize if you miss payments on the debt. This collateral functions as assurance for the lender, rendering secured loans less risky. Conversely, an collateral-free loan forgoe