What is the difference between secured and unsecured loans?

Secured loans require collateral (home loans, car loans, gold loans, loan against property) with lower interest rates (7-12% p.a.), higher loan amounts (up to 80-90% of asset value), longer tenures (up to 30 years for home loans), and easier approval for lower credit scores. Risk: Asset can be seized on default. Unsecured loans (personal loans, credit cards) need no collateral, have higher interest rates (10-24% p.a.), lower loan amounts (typically ₹40 lakhs max), shorter tenures (1-7 years), and require good credit scores (700+). Risk: Legal action and severe credit score damage on default. Choose secured for large amounts at lower rates; unsecured for quick, smaller amounts without asset risk.