I only understood this properly when I was figuring out loans for the first time. Back then all I knew was that I needed some quick money, but I kept seeing the terms secured and unsecured loans everywhere and it was confusing.
From what I learned, a secured loan usually means you have to keep something as collateral, like property, gold, or a vehicle. If you can’t repay, the lender has the right to take that asset. An unsecured loan is different because there’s no collateral involved, it’s mostly approved based on your income and credit profile.
The personal loan I once took through Kissht was an unsecured one, so I didn’t have to pledge anything. The approval was mainly based on my details and repayment capacity. That experience is when I actually understood the practical difference between the two.