Collateralised vs. Collateral-free Loans: Understanding the Difference
When requiring a loan, one of the most crucial aspects is whether it's collateralised or collateral-free. A protected loan requires collateral, which is an asset the lender can seize if you default on the financing. This collateral acts as protection for the lender, making secured loans less risky. Conversely, an collateral-free loan doesn't this n