what is a secured loan mean

what is a secured loan mean插图

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Key TakeawaysA secured loan is one that requires collateral such as property,assets,or cash.A few common types of secured loans include mortgages,home equity loans,and auto loans.If you don鈥檛 pay back your secured loan,the lender could seize the collateral you put up to get the funding. …More items…

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  • What is a secured home loan?

  • A secured loan requires you to pledge an asset, such as your home, as collateral for the loan. In the event of missing a payment or defaulting on the loan, your bank or lender can then collect the collateral.

  • What is the difference between unsecured and secured loans?

  • Interest rates for secured loans tend to be lower compared to unsecured loans since you鈥檙e using an asset to secure your loan. If the lender approves your loan, you get the money but the lender places a 鈥渓ien鈥?on your collateral. Basically, a lien gives the lender rights to the property.

  • Is a secured loan a good idea?

  • A secured loan is a loan that has an asset as collateral for the loan. In the event of missing a payment or defaulting on the loan, the bank or lender can then collect the collateral. … A secured loan can be a good way to build credit if you go through a reputable lender like a bank or credit union.

  • What is the collateral for a secured loan?

  • In some cases the collateral for a secured loan may be the asset you鈥檙e using the money to purchase. If you鈥檙e getting a mortgage for a home, for example, the loan is secured by the property you鈥檙e buying. The same would be true with a car loan. 1 锘?/div>Secured Loans Definition – Investopedia

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