Personal loans are unsecured loans and are therefore not protected by any form of collateral, so if you happen to default on the loan, the lender is not able to automatically take your assets. Instead of having your property as a form of collateral to secure the loan, the bank looks at your creditworthiness and income. Meanwhile, a secured loan is protected with collateral (most of the time it is your property), it may have a lower interest rate but it can be riskier as you might lose your collateral if you are not able to make payments on time. However, if you would like to loan more than the bank approved, it may be possible to get a higher loan if you have collateral or a guarantor, but you need to check this in either the product disclosure sheet or terms & conditions or with a representative from the bank.