There are a range of loans offered by banks, NBFCs, and other financial service providers to suit different needs. However, loan categories are divided into secured and unsecured loans. As the name suggests, a secured loan requires the borrower to pledge the property or security of the borrowed money. Unsecured loans, on the other hand, are not secured by collateral. Both money lending and overdrafts on term deposits fall within the category of secured lending. But why are gold loans better than overdrafts to FDs?