Loan
Secured Loan
Also known as: Collateral-based Loan, Asset-backed Loan
Loan backed by collateral such as property, gold, or fixed deposits to reduce lender risk.
Detailed Explanation
Secured Loans require collateral to back the loan amount, reducing risk for lenders and resulting in lower interest rates for borrowers. Common secured loans include home loans (property collateral), car loans (vehicle collateral), loan against property, and gold loans. If borrower defaults, lender can recover money by selling the collateral. Processing takes longer due to collateral verification but offers better terms.