New Delhi, June 4 -- A rising number of borrowers in the country are opting for personal loans, amid high consumption demand and rapidly evolving liquidity conditions. Even according to the latest sectoral deployment of bank credit report of April 2025 by RBI, loans to the personal segment that includes credit card dues, housing, education along with other loans have maintained a reasonably steady growth trajectory.

Still, it has been seen that many borrowers remain unclear and uncertain about the conceptual difference between secured and unsecured personal loans.

Personal loans are generally unsecured in nature i.e., they are not backed by collateral like gold loans or property loans. In stark contrast, secured personal loans need the ...