A secure loan is a loan that relies on an asset as collateral/security. In case of default, the lender can take possession of the asset and use it to recover the loan. Secure loans are often the best and quickest method to obtain a large amount of money. Secure loans can be obtained as a home equity loan against a second mortgage, debt consolidation loan, investment which requires a large amount of money of which a loan can be given against security and generally for any other purpose as long as it can be defined under the general term as being secured on a property or asset.
Unsecure loans do not have any asset tied to them as security. They often are more difficult to obtain than secure loans and have generally higher interest rates. With unsecure loans lenders take more risk and for that reason will often charge higher interest rates. Such loans usually can take the form of personal loans, credit cards, payday loans, overdrafts and guarantor loans.