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| Basis | Secured NCD | Unsecured NCD |
| Meaning | Backed or guaranteed by company's assets. | Not backed by the assets of NCD issuer company. |
| Default | In default of payment, assets can be liquidated to repay investors. | Company's assets cannot be liquidated. |
| Risk | Less risky as payment is guaranteed. | High risk. |
| Returns | Secured NCDs carry less risk and offers lower returns. | Unsecured NCDs offer comparatively higher rate of returns than secured NCDs. |