A secured installment loan for veterans is one in which the borrower must pledge an asset as security. To qualify for a secured installment loan, the borrower must present proof of ownership of the object used as collateral. Once accepted, the lender keeps the asset until the borrower has paid off the loan amount plus interest. Secured installment loans frequently have higher interest rates than unsecured loans. An unsecured personal loan is a credit product in which the borrower does not commit assets to secure the loan. Borrowers should be able to approve these loans as long as they complete their payments on schedule. However, this form of financing comes with its own set of hazards. If a borrower fails to make payments, he may lose the property or assets used as collateral.