Secured loans require you to provide an asset as collateral for the loan. There are a number of options you may be able to choose from, such as:
Personal loans secured by car
The most likely personal loan that would be secured by a car is a car loan. Secured car loans are often for new cars only, as a newer car is more likely to retain enough value over time to secure the loan in case of default. Some lenders will let you secure a loan with the value of a used car, though age limits on the car may apply e.g. only cars under 7 years old.
Personal loans secured by deposit
Sometimes known as cash-secured loans, this is where your own savings are used as collateral. In simple terms, the loan is secured on your savings account or term deposit. This may also help to build your credit history.
Personal loans secured by property
If you own your home outright, or you have built up enough equity, you can use your property to secure your personal loan. Your usable equity is typically 80 per cent of your home’s current value, minus the remaining principal owing on your mortgage.
Personal loans secured by other assets
If you own other valuables, such as jewellery or artworks, you may be able to ask a lender to accept them as collateral for a personal loan. Not every lender will accept every type of asset as security on a personal loan.