Secured vs unsecured loans: What’s the difference?
24 Oct 2025
24 Oct 2025
10 min. read
| Secured loans | Unsecured loans |
|---|---|---|
Collateral | Required (eg property, equipment) | None |
Loan amount | Up to £5 million | £10,000-£2 million |
Interest rates | From ~4% | From ~6% |
Repayment terms | 1-25 years | 1-6 years |
Approval time | 1-4 weeks (valuation needed) | 24-72 hours |
Credit requirements | Flexible (collateral offsets risk) | Varies by lender (good credit/revenue may be needed) |
Best for | Large investments, asset-heavy sectors | Cash flow, speed, low-asset businesses |
Risk | Asset repossession | Higher rates, credit score impact |