The main difference between secured and unsecured loans is that the unsecured loan doesn't require collateral. Hence, option A is correct.
Unsecured loan is the type of loan that do not require any kind of collateral security, This loan is passed by the lender not against the security, but it passes through the borrower's creditworthiness. Involve no collateral in any way. Credit cards, personal loans, and school loans are typical illustrations. A person's creditworthiness and the word are the only guarantees a lender has that you will pay back the debt in this situation.
Interest rates on unsecured loans will be greater than those on secured loans. This is due to the fact that the lender does not have assurance that you will repay the loan; the higher interest rate serves as payment for this increased risk.
Thus, option A is correct.
For more details about Unsecured loan, click here:
https://brainly.com/question/8347317
#SPJ2
