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Loans FAQ:

 

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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