Most secured loans are not high-interest loans and they are usually backed by collateral.
What are secured loans?
Secured loans demand the borrower to dedicate an asset or security as an assurance or collateral for the loan in order to get it.
For example:
- A mortgage on a house or
- An auto loan.
Secured loans are often long-term loans; e.g, the average period of a house loan is 30 years, whereas vehicle loans run 4-5 years.
These kinds of loans are often repaid in monthly installments and have low-interest rates.
Learn more about secured loans here:
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