But the one difference which is the most prominent and I guess could become a deciding factor is the amount you can avail under both and the purpose you need it for.
Since loan is always about getting external cash assistance you need to decide your requirement and then apply for loan.
If you are want to acquire cash for small and urgent purposes. You are good to go with unsecured loans as here you get instant approval and within few hours you can receive cash.
The amount of cash received here is small. You can fix any urgent issue using this loan amount. There is no need to pledge any security here since these loans are unsecured in nature.
However if your requirement is planned and you need huge amount you have to apply for secured loans. Since these loans are backed by security you can apply for a huge sum here. Lenders would have a security that there money is safe since they have your property etc as security.
Application process for both might differ. Under unsecured loan there is no need to meet lenders and you can apply for loans online since the process is on web. You will only have to fill in an online application form.
Under secured loans you might have to fulfill some formalities of meeting lenders and filling some paper form. Since you pledge your security there has to be some personal discussions.
For initial round you can log in to lenders providing these loans and understand it completely. In case you have any doubts you should contact lenders immediately. Since lenders are available all time you can get your doubt clarified then and there.
Whether you should apply for secured loans or unsecured loans, you need to decide based on the needs and advantages, as discussed above.
