A secured loan allows borrowers to obtain funding by offering an eligible asset as collateral. Because the lender has security against the loan, borrowers may access potentially better interest rates or larger funding amounts, depending on their profile and lender terms.
However, failing to repay as agreed can put the pledged asset at risk. Understanding interest rates, repayment schedules, collateral requirements, processing charges, and other terms can help you make a more informed borrowing decision.
