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3. Personal Loans Can Be Secured or Unsecured

Most personal loans are unsecured. This means you qualify based on your credit history, and you don't need to put up any collateral. If you can't qualify for an unsecured loan, your lender may be willing to give you a secured loan. In this case, your loan is linked to your savings account or some other form of financial collateral. If you don't make your payments, the lender can claim the collateral as their own.

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