Secured loans require collateral such as property, gold, or your car. Because the lender has an asset as security, interest rates are usually lower and tenures longer.
Unsecured loans like personal loans need no collateral. Approval is based purely on your credit profile, which is why they carry slightly higher interest rates.
Choose a secured loan when borrowing a large amount for a long-term goal, like buying a home. Choose an unsecured loan for smaller, short-term needs where you want speed.
Remember that in a secured loan, failure to repay can lead to losing your asset. Weigh the risk against the lower cost before committing.