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Remind me, what's the difference between a secured loan and an unsecured loan?
Remind me, what's the difference between a secured loan and an unsecured loan?
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Written by Roshni Ruth Jesudoss
Updated over a week ago

A secured loan is a loan backed by collateral, in this case, your vehicle. Whereas an unsecured loan requires no collateral.

When you take out a secured loan, Harmoney registers a security interest on the vehicle you offered up as collateral.

Harmoney can repossess and sell the vehicle in the event of default and apply it to the outstanding debt. Once the loan is paid off, Harmoney releases the security.

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