You provide some form of collateral (such as your home or car) to act as security for the lender, protecting them from loss if you fail to repay the loan when you take out a secured loan. A loan that is unsecured maybe not make use of any security. Short term loans could be considered greater risk for the financial institution and that can have less favorable rates of interest and terms.
What exactly is A secured loan?
You agree to provide the lender with some form of collateral — something that has monetary value equivalent to or greater than the amount you’re borrowing when you take out a secured loan.