Secured Loan: What It Is, How It Works, & How To Get One

WKBT
February 17, 2021 9:16 AM
Kiah Treece - Forbes Advisor
Posted:
Updated:
February 19, 2021 4:25 AM
Secured loans can help borrowers access much-needed cash or make large purchases—like a home or new car—often with less rigorous qualification requirements than unsecured loans. By pledging valuable assets, a borrower can obtain financing while keeping interest rates low. Lenders also face less risk when extending secured loans, because they can foreclose on or repossess the collateral if the borrower defaults.
What Is a Secured Loan?
A secured loan is one that is collateralized—or secured—by a valuable asset, such as real estate, cash accounts or an automobile. In many cases, the loan is secured by the underlying asset being financed like a home or vehicle; alternatively, borrowers may be able to pledge other collateral like investments or valuable collectibles.

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