A secured personal loan is so called as the amount you borrow is secured against the value of a property, usually your home. Obviously, you will need to be a homeowner to obtain a secured loan.

The advantage of this type of loan is that there is less risk to the lender, as they are guaranteed to get their money back somehow, even it means repossessing your property. Although this makes secured loans typically cheaper than their unsecured counterparts, it also represents a significant hazard. If you are unable to meet your loan repayments, then you may lose your home. So proceed with caution!