Loans FAQ
What are Secured Loans?
Secured loans are loans which are 'secured' on the assets of the borrower. The most likely asset for a secured loan is the borrower's property, although in some cases, lenders may allow the loan to be secured against other items of value (eg cars, antiques etc).
Because the lender has security, the interest rate (APR) offered is usually lower than for unsecured loans, as in the event of the borrower defaulting on repayments, the lender may begin legal proceedings to recover the debt. This may ultimately end up with the borrower's assets being sold.
