What is a secured loan?
These are loans which are 'secured' on the assets of the
borrower. The most often used asset for a secured loan is the
borrower's property. In some cases, lenders may allow the loan to be secured
against other items of value.
Because the lender has security, the interest rate (APR) offered is
usually lower than for unsecured loans, but rates can vary greatly
depending on individual circumstances.
In the event of the borrower
defaulting on repayments, the lender may begin legal proceedings to
recover the monies owned. This may utlimately end up with the
borrower's assets being sold.
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