Secured loans have lower interest rates than unsecured loans because collateral is pledged. Secured loans are more readily available and have lower chances of rejection since they are given against collateral. However, the loan amount that can be borrowed is higher for secured loans because it is calculated based on the value of the collateral. For unsecured loans, the interest rates vary depending on the loan amount and tenure. The loan tenure for unsecured loans can be short to medium, while for secured loans the tenure depends on the customer's requirements. The maximum loan amount is lower for unsecured loans as it depends on the borrower's credit score and monthly income.