The interest rate charged on secured short-term loans is typically higher than the rate on unsecured short-term loans.

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This is true because secured loans are backed by collateral (such as a car or property), which reduces the lender's risk. Therefore, they often charge higher interest rates to compensate for the risk they are taking. In contrast, unsecured loans do not require collateral, which makes them less risky for the borrower but more risky for the lender, resulting in lower interest rates.

The Interest Rate Charged on Secured Short-Term Loans Is Typically