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Papessa [141]
3 years ago
13

Why does an unsecured loan have a higher interest rate than a secured loan?

Social Studies
1 answer:
polet [3.4K]3 years ago
5 0

Answer:

Unsecured personal loans typically have higher interest rates than secured loans. That's because lenders often view unsecured loans as riskier. Without collateral, the lender may worry you're less likely to repay the loan as agreed. Higher risk for your lender generally means a higher rate for you.

Hope this helps :)

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The complete question is attached in image form.

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Learn more about Intrinsic motivation from here:

brainly.com/question/9176131

#SPJ1

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