Secured loan agreements involve putting up assets as security against the money advanced. If the loan is not repaid the assets can be seized.
Unsecured loans do not require you to put up assets as security and are based on your credit rating, financial status and how much you want to borrow. As such, it is essential that a properly drafted agreement clearly sets out the terms and conditions under which the money has been lent.
Obtaining legal advice can be money well spent to safeguard your interests whether you are a borrower or a lender.