With a Secured Loan the leisure goods is offered as security against the loan. The borrower repays the loan in monthly instalments and when the loan is finalised, the lender releases the security against the loan. If the borrower defaults on their payments, the lender has the right to repossess the goods. With an Unsecured Personal Loan, there is no security against the loan. As there is no security, the interest rate on this type of loan is higher than for a secured loan and additional conditions may be applied by the lender. The lender may request additional security from the buyer in the form of other property, goods, assets or personal guarantee for unsecured loans.