Officer Desai has been called to the scene where a recent model dark blue four-door BMW automobile is sitting on the shoulder of the road, unoccupied, with apparently recent damage to the front bumper of the vehicle and shell casings on the driver's seat. There is nobody around the car. When the officer's sergeant arrives they discuss what to do about the car. If this vehicle matches the description of a vehicle stolen that morning from a bank parking lot, they:

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan