Secured vs. Unsecured Loans in Kenya 2025

Understanding the differences between secured and unsecured loans can help you make informed financial decisions. Here's a breakdown of each loan type available in Kenya.

Secured Loans

Secured loans require collateral, such as a car logbook or property title deed. They often come with lower interest rates due to the reduced risk for lenders.

• Advantages: Lower interest rates, higher loan amounts.
• Disadvantages: Risk of losing collateral if you default.

Unsecured Loans

Unsecured loans do not require collateral and are based on your creditworthiness. They are suitable for individuals without significant assets.

• Advantages: No collateral needed, quicker approval process.
• Disadvantages: Higher interest rates, lower loan amounts.

For a more detailed comparison, visit Mwananchi Credit.