Finding the Bank Secured Loan For You

When you’re looking for a bank secured loan, you might think that there are only one or two options available to you, this isn’t always the case, however. As banks tend to offer a variety of different loan options depending upon the purpose of the loan, you might be able to find a variety of different bank secured loans that are available to fill your every need.

Even individuals who have had credit problems in the past may be able to find a bank secured loan to either help them consolidate their outstanding debts or simply attempt to get their lives and credit back on track.

This article should serve as a general guide to help you along your way, showing you some of the options that are available to you and getting you started in the right direction.


If you’re interested in getting a bank secured loan, it’s important that you understand exactly what a secured loan is. A secured loan is called “secured” because some item or piece of property (known as collateral) serves as a security deposit for the loan, guaranteeing that the loan will be repaid even if you are unable to pay it yourself.

The lender gains a legal claim to the collateral item (known as a lien), and has the right to take possession of your collateral and put it up for sale if you are unable to keep up your loan payments as promised.

Most items can be used as collateral, though high-value items such as real estate, precious metals, automobiles, and home equity are some of the more common. Once a secured loan has been repaid in full, the collateral item is released from its lien and full ownership reverts to the original owner.


There are a variety of bank secured loans available, though some are more common than others. Loans such as personal loans, home equity or homeowner loans, and debts consolidation loans are all very popular and common types of bank secured loans, as are automotive loans and mortgages.

These last two are somewhat special cases, as they usually require no additional collateral… the purchased item (i.e., the car or the house) serve as the collateral and have a lien upon them as soon as they are purchased. Once the loan is completely paid off, the lien is released and the owner gains full legal control over the property or vehicle.

Getting the Right Loan for You

The bank secured loan that you get will largely depend upon what it’s going to be used for… after all, there’s no sense applying for a mortgage loan if you’re simply wanting to borrow a small amount to pay for a trip or vacation.

You should shop around at different banks, request information and quotes on different types of loans that they might offer, and take the time to compare each loan type to what it is that you’re wanting to do with the borrowed money. Often the bank loan officers will be able to offer suggestions to help match your needs with a loan that they offer.

Loans for Bad Credit

Just because a person has bad credit doesn’t mean that they aren’t eligible for a bank secured loan. Bad credit loans often have higher interest rates or require high-value collateral, but there are generally a variety of loan options available for individuals of all credit ratings.

Take the time to investigate the options that your local banks offer to find the loan that’s right for you.