For borrowers
MarketLoan vs. an unsecured personal loan
An unsecured personal loan or credit card prices you on your credit profile, so the cost carries a premium for the lender's risk. A MarketLoan loan is secured by an asset you pledge, so the collateral does the underwriting instead of your credit score — the design intent is to remove the risk premium that unsecured borrowing charges.
Comparison table
| Dimension | Unsecured personal loan | MarketLoan |
|---|---|---|
| What it's priced on | Your credit profile | The asset you pledge as collateral |
| Backed by an asset | No | Yes — plus a UCC-1 lien filed at origination |
| Credit check central to approval | Yes — drives approval and pricing | Collateral does the underwriting; any checks are disclosed |
| What's at stake | Your credit, and collections if unpaid | The specific asset you pledged |
| Built for | General borrowing without assets | Liquidity for people who own real assets |
Illustrative comparison of the intended MarketLoan experience against a common alternative. MarketLoan is in development; final terms and availability are published at launch. This is not a rate or price comparison.
How the loan is priced
Unsecured lenders can't fall back on collateral, so they price in the risk that you won't repay — that's the premium built into personal loans and credit cards. A secured loan is backed by an asset, which is designed to remove that premium. See our note on secured vs. unsecured loans to understand why.
What secures the loan
A MarketLoan loan is backed by the asset you pledge and by a UCC-1 lien — a public notice recording the lender's claim on that specific item — filed when your agreement is accepted. An unsecured loan has no such backing, which is exactly why it costs more.
What's at risk
With an unsecured loan, missing payments hurts your credit and can lead to collections. With a secured loan, the specific asset you pledged is what's at stake: if a loan isn't repaid, it's sold to cover the debt — disclosed clearly before you accept any offer.
Be first to know
MarketLoan is pre-launch. Join the waitlist and we'll keep you posted as we build.