What is a Secured Personal Loan and How Can You Get One?


A Secured Personal Loan is ideal when you aim to have a lower interest rate with your loan. The downside of this type of personal loan is that you will be required to have collateral to secure it. Collateral is an asset or an item of value that you own which may be confiscated by the lender if ever you fail to pay off your dues.

Items that qualify as collateral may differ from one lender to another. Listed below are the most common assets that you may use when you decide to apply for a secured personal loan.

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Common Collateral Assets for Secured Personal Loans

  • Certificate of Deposit Account Fund. A certificate of deposit account is a savings account in which you deposit a certain amount of funds for a certain length of time. By the end of the term of your choice, your funds will come back to you with an interest from the bank. Make sure that your certificate of deposit is valid and legit to avoid problems.
  • Personally-Owned Vehicle. Motorcycles, Cars, Trucks, Boats, Airplanes, etc. Any type of vehicle may be considered as collateral to your loan. The registration of the vehicle should be under your name. Some lenders may have special conditions before accepting your vehicle as collateral, so do inquire before proceeding with your application.
  • House or Land Property. To use a house or land property as your collateral, prepare the complete documents to prove the legitimacy of your ownership of the property.
  • Business Investments, Stocks, or Bonds. If you own a business or have investments, stocks, or bonds, make sure that you have all your supporting documents on hand.
  • Jewelry. Unfortunately, not all types of jewelry are accepted as collateral. Most lenders only accept those made with genuine and high-value materials.
  • Valuable Items or Collectibles. Fine art, antiques, collectibles, etc. These things can be your collateral as long as they are of high value. If you are considering using any of these items, make sure that they are genuine, of high quality, and in good condition.

The choice of asset that you offer as collateral is all up to you. But do keep in mind that the value of your collateral will help determine the value of the loan amount that will be offered to you. As long as you are confident that you are a responsible payor and have the resources to qualify for a secured loan, availing of this type of loan would be best for you to enjoy lower interest rates.

Learn more about debt consolidation loan in Singapore

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