Secured Loan: A viable solution against collateral

Secured loan refers to the borrowed loan that is backed by collateral. It requires some form of capital or collateral as security for the loan. These loans use homes and properties as security, which would be liquidated if the borrower default's on the loan. For individual borrowers these are also known as personal secured loans. Secured loans are also available for business borrowers, which are known as 'Commercial Loans'.

For example, Andrew took a loan from Jennifer by giving his property as collateral. Thus, this type of loan is 'secured loan' since it is backed by collateral.