Please Answer My Question.

A secured loan is a loan guaranteed to be repaid or some asset will be forfeited. The best and most common example that we all know about as a secured loan would be a home loan where the loan is secured by the home. If the borrower doesn't pay off the loan then the home is forfeited to the lender. Just look down your block and you will see this in action unfortunately. An unsecured loan is a loan that is not secured by any asset at all. Just your promise to pay and possibly lose your good credit rating. The most common form of unsecured loan that we deal with everyday is the credit card. Look in your wallet see all those unsecured loans just laying there waiting to be used. Those are the primary differences between a secured and an unsecured loan.