When you are looking to take out a personal loan there are lots of decisions you need to make. You need to choose which type of loan you want to take out. You need to choose which lender you want to borrow from. You need to decide if you will take out insurance. And, you will need to decide if you want a secured or unsecured loan.

Today, we can help you with that last choice – here is a guide to secured personal loans and how to get them.

What are secured loans?

Secured loans are loans for which the borrower pledges something that belongs to them as collateral. These items are usually a car or a house. This item that is pledged is almost treated as a second debt to the lender.

If the borrower defaults on any of their payments, the lender is entitled to claim the collateral either permanently or until the borrower starts making their payments again.

If the borrower does not make their payments and the value of the collateral does not cover the whole debt, the lender has the right to claim more of the borrower’s property through the court.

The most famous type of secured loan is the mortgage. With mortgages, the house brought with the loan is put up as the collateral. So, the house can be reclaimed by the bank if mortgage repayments are missed. Pawnshop loans are also technically secured loans. 

It is possible to get secured personal loans.

What is the difference between personal loans and other types of loans?

If you are new to the world of loans then the difference between the many different types of loans can be confusing. Today, we are going to talk about what personal loans are and how they are different from other types of loans.

Most loans that you apply for (auto loans, mortgages) are for a fixed amount based on the item you are trying to buy with the loan. For example, when you are buying a house the bank will give you exactly what you need and you will have to spend it on your house.

Personal loans are different. Personal loans are not attached to a purchase, meaning that you can request as much as you want and you don’t have to spend it on anything in particular. Personal loans do not face the same types of restrictions as other types of loans.

Many people with bad credit will struggle to get loans like a mortgage or an auto loan. However, they will have a lot easier time getting personal loans.

Not all personal loans are secured, in fact, most of them aren’t. However, there are many benefits to getting your loan secured if you have the collateral to do it.

Benefits of a secured personal loan

It is common for people to be worried about taking out secured personal loans because if you default on paying your loans, you could lose some of your most valuable assets.

However, there actually are quite a few benefits to taking out secured loans.

Firstly, if you have a bad credit score but assets to your name, a secured loan could be your best option. By offering up your collateral, banks are more likely to take a “risk” on someone with bad credit.

Secondly, if you are looking to take out a bigger loan, then taking out a secured personal loan instead of an unsecured one can make that happen for you.

Finally, putting up collateral and taking out a secured personal loan can reduce the amount of interest you have to pay on a loan.

How to get a secured personal loan?

If you are looking for secured loans then you will need to make sure that you pick a verified and secured lender. Make sure that the lender offers the type of secured loan you are looking for – for example, CreditNinja’s secured personal loans

Once you have found a lender you trust you need to decide how much you want to borrow. This choice will dictate the items that you will need to put up as collateral. Most lenders will have a list of items that they do and do not accept.

You will then need to apply for a loan. If the lender is happy with your application and the items you have put up as collateral, they will approve the loan. They will agree to a repayment plan with you, as well as, determine interest rates for your repayments.  And the money should then be within you within three days. 

If you are looking to take out a secured loan, we recommend also taking out PPI (payment protection insurance). This will protect your assets if you become unable to make your repayments. 


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  1. Countless lending agencies are there to take care of your every financial requirement. These loans are purposely crafted in a way that takes care of your urgent, unplanned expenses which you could never fulfill with your basic monthly income. So start your hunt through online services and once you get the list of reputed lender, make efforts to personally contact them by visiting their site. They will then demand for details regarding your requirements and other important information related to your offered collateral.

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