Many banks and credit unions offer secured personal loans, which are personal loans backed by funds in a savings account or certificate of deposit (CD) or by your vehicle. As a result, these loans are sometimes called collateral loans. There is frequently no upper limit on these types of loans.
What will banks take as collateral?
Personal loans are typically unsecured, meaning they dont require collateral, but lenders require some personal loans to be backed by something that holds monetary value. Collateral on a secured personal loan can include things like cash in a savings account, a car or even a home.
Is it hard to get a loan with collateral?
The application process can be more complicated than for an unsecured loan. Lenders have to value your assets used to secure a collateral loan, so this might mean youll need to provide more information than you would for an unsecured loan. But the process — and how long that process takes — can vary by lender.