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Unsecured loans are not secured against property and so may be at higher rates than those that are.

With unsecured loans,the lender doesn’t have a claim against your property as they would with a secured loan and so there is more risk involved for them. If the borrower defaults on payments the lender cannot claim a charge on any property like they can with a secured loan. With a secured loan,if the borrower defaults on payments the lender has a legal right to claim on the asset that the secured loan has been secured upon. Secured loans are normally secured on property,unsecured loans are not secured on property.