| Secured loans — one of the most popular types | | | | This security prompts the lenders to offer loans at low |
| of loan uses the home or any other property owned | | | | interest rates. Secured loans are panacea for people |
| by the borrower as collateral. The borrower pledges | | | | who otherwise would have faced a rejection due to |
| his property to the lender for the repayment duration. | | | | their poor credit ratings or any other cause. Thus by |
| Although there are numerous other types of loan, but | | | | offering proper collateral almost anyone can get the |
| lenders are most comfortable while giving a secured | | | | desired loan. Secured loans can be taken for a wide |
| loan. The obvious reason for this comfort is the | | | | spectrum of uses such as debt consolidation, |
| element of security or collateral. This collateral ensures | | | | renovation of homes, funding a holiday or buying a |
| a peace of mind for the lender because he has | | | | new car. |
| something to bank upon in case the borrower defaults. | | | | |