Secured loans are loans wherein the borrower guarantees some asset as collateral for it. An example is a home. This in return turns into a secured debt billed to a creditor who provides the loan. The debt because it is secured by the collateral is safe for the lender. So if the borrower has problems paying the loan installments or can’t pay it at all the lender will take ownership of the asset and can sell it to recover the debt. On the other hand, an unsecured debt is unconnected to definite pieces of property. Instead, the creditor can gratify the debt from the borrower than a borrower's collateral.

There are two purposes with secured loans. First, by widening the loan by means of securing debt, the creditor becomes reassured of the financial dangers involved since it permits the creditor to get hold of the property should the debt not be repaid. Also it allows debtors can obtain loans on much more positive terms than what is obtainable for debt which are unsecured. The creditor can offer a loan with better interest rates as well as repayment periods for a secured debt.

Savings secured loan. This is a secured loan which is particularly obtainable from credit union or bank. Here, the borrower should have a savings account with his creditor. A part of that money is used as collateral in order to get a loan equal to the amount of money guaranteed. The money is frozen in the account but continues to earn interest. When the loan has been repaid, the secured part of the said savings account becomes free. Thus, the creditor offers a lesser interest rate. The drawback is the limitation through the offered fund with a savings account.
Another type is the mortgage loan which is a type of secured loan wherein the collateral has to be property such as a house or land.

The nonrecourse loan is a type of secured loan wherein the collateral is the sole security and claim the creditor possess. The creditor does not have further option from the borrower for deficit remaining right after the foreclosure of the property.

Secured loans can be had fairly easily as long as borrowers meet the lenders basic requirements and the security for the amount to be borrowed is adequate. It is important to know that property in the form of land or a house are the more common forms of security offered and accepted.