Secured Loan

A secured loan is a type of loan backed by collateral—an asset like a house or car. This means if you fail to repay, the lender can take possession of the collateral to recover the money. Because there's security involved, secured loans often have lower interest rates and larger borrowing amounts compared to unsecured loans. Examples include a mortgage or a car loan. The collateral reduces the lender's risk, making it easier for you to access funds for big expenses or investments.