Secured loans are secured against something of high value, for example a house.
Secured loans often come with a lower interest rate than other type of loan - and this is because the lender is taking less risks with their money by giving out a secured loan. The thing is, if the borrower fails to repay the loan, then the lender can keep whatever the loan was secured against.
For example, a mortgage is a type of secured loan. This means that if a borrower fails to repay their mortgage, then the lender can repossess their house. This is an extreme example though, and there is plenty of help available for people struggling with payments to their secured loans.
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