Secured Lending

Secured lending is a type of loan where the borrower pledges an asset, like a house or car, as collateral. This means if the borrower fails to repay the loan, the lender can take the asset to recover their money. Because the lender has reduced risk due to the collateral, secured loans often come with lower interest rates compared to unsecured loans, which don't require collateral. Common examples of secured lending include mortgages and auto loans, where the property or vehicle serves as security for the loan amount.