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Best Secured Personal Loans for 2024

Secured personal loans let you borrow money against the value of an asset like a car or savings. Secured loans may carry lower interest rates, but they also carry risk.

Want to jump straight to the answer? Upgrade is our favorite secured personal loan lender to get a loan of up to $50,000 within the next few business days.

A secured personal loan can help you achieve your financial goals. Whether it's for a new car, renovations to your home, consolidating debt or even funding an education, there are now more ways than ever to apply and qualify for the type of personal loan that best suits your needs.

Secured personal loans require a form of collateral – usually in the form of an asset that you own, such as your vehicle or the mortgage on your home. It's typically offered by traditional lenders and has fixed interest rates and monthly payments.

These are the best secured personal loans available that can meet your financial goals.

Lenders that Offer Secured Personal Loans

LenderFixed RatesLoan AmountsMin. Credit ScoreAcceptable Collateral
Avant9.95% – 35.99% APR$2,000 to $35,000550Car
First Tech Federal Credit UnionCheck with lender$25,000 to $1,000,000
(depending on collateral)
Varies depending on amount and security of the loanStock
First Tech Share Certificate
First Tech Savings Account
Navy Federal Credit UnionCheck with lenderEqual to the amount of your savings or certificate of depositCheck with lenderNavy Federal savings account
Navy Federal certificate of deposit
OneMain FinancialCheck with lender$1,500 to $25,000Check with lenderCar
OportunCheck with lender$300 to $10,000Check with lenderCar
Upgrade8.24% – 35.97% APR$1,000 to $50,000
($3,005 minimum in GA; $6,005 minimum in MA)
Wells FargoCheck with lender$3,000 to $250,000
(depending on collateral)
Check with lenderSavings account
Certificate of deposit

Many people have the impression that borrowing money from financial institutions is a very complicated and difficult matter but this is not always true.

Banks, mortgage lenders, and other finance houses are always willing to lend money to people who have financial integrity or are able to offer collateral in return.

That is where secured personal loans come in.

What is a Secured Loan?

Secured loans are financial products that are supported by collateral. This means that when applying for a secured loan, the lender will request information on the assets that will be used as collateral.

The lender will then place a legal claim on the designated asset until the loan has been fully repaid. In the event of a loan default, the lender has the right to seize the collateral and sell it to recover their losses.

Before taking out a secured loan, it is crucial to fully understand the terms and conditions of the loan and the assets that are being put up as collateral. This will help ensure that you are aware of the potential risks and consequences associated with the loan.

How Much Can You Get with Secured Personal Loans?

The amount of money you can get with a secured personal loan depends on the value of your collateral. If you have an asset such as a vehicle worth $10,000, then you can borrow up that amount.

This is because if you fail to pay back the money, the lender can sell your car to recoup any losses.

Just remember that if you have established credit history or the ability to repay the loan then you may be able to receive more than the value of your collateral.

If you're seeking to borrow a lower amount, such as anything under $250, you'll likely want to use apps for instant money to get paid today.

Types of Secured Loans

A secured loan is a loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. (Wikipedia)

Types of secured loans include:

  • Auto loans (new and used).
  • Loans against your lien-free auto (title loans).
  • Recreational vehicle loans.
  • Boat loans.
  • Home Equity Lines of Credit (HELOCs).
  • Pawnshop loans.

Advantages of Secured Personal Loans

There are several benefits of a secured personal loan, including lower interest rates, more favorable repayment terms, and the ability to obtain a larger loan amount.

Additionally, a secured personal loan can help improve credit scores if the borrower makes their payments on time.

If you are considering taking on a secured loan then consider these advantages:

  • Competitive interest rates. Since you are offering up collateral then you are able to get a lower interest rate over an unsecured loan.
  • More money. Since you are pledging some type of asset be it your home or car, the lender knows you'll likely pay back the loan and will offer more.
  • More flexibility. Compared to unsecured loans you will be given more flexible repayment options, which can really be beneficial.

Disadvantages of Secured Loans

One of the main risks of a secured personal loan is the risk of losing the collateral if the borrower is unable to repay the loan.

This can result in the loss of a valuable asset and further financial hardship.

Additionally, if the borrower defaults on the loan, the lender may take legal action to recover the debt, which can result in additional fees and expenses.

Whenever you are borrowing money — expect some disadvantages:

  • Collateral comes with risk. Since you pledging your collateral — if you do not repay back the loan then your assets may be lost.

How do I apply for a secured personal loan?

The application process for a secured personal loan typically involves filling out a loan application and providing information about the collateral being used to secure the loan.

The lender will also perform a credit check and verify the borrower's income and employment.

The loan approval process may take several days or longer, depending on the lender's requirements.

How to Get a Secured Personal Loan

If you need a loan, you have to follow the right procedure so that the money lender will approve the loan and make the cash available to you.

Below are the steps you should take to improve your chances of getting the loan.

Write Out Your Plan

No bank will lend you money unless you have a plan for the cash you want to raise. Write out a detailed are a few examples to illustrate how the process works. If you take out a mortgage loan, your house is the collateral in this case. If you are not able to repay the loan, you will forfeit your house to the creditor. If you borrow money to execute a contract, you might pledge your car as collateral. If you are unable to repay the loan, you will lose your car to the creditor.

Note that your creditor wants you to succeed. Banks and other finance houses are not in business to impound and sell the collateral. You only lose your collateral in cases where it is clear that you cannot repay the loan. Finally, a secured loan must go with collateral to protect the lender. Write a great proposal, give your banker collateral and you will get the loan you need.

Make sure to plan and state clearly why you need the money. This plan is also called a proposal and it usually includes the following things:

Why you need the loan

Banks usually lend you money from the perspective of investment. If you have a great investment idea but you do not have enough money, your banker will give you a loan to actualize your investment dream. Note that your plan should be honest and convincing. If your plan is unrealistic, you will not get the loan.

Your repayment plan

A loan is not the same thing as a grant. The organization giving you the loan expects you to repay the loan and keep to the terms of the deal. You must write out your repayment plan and state clearly how and where you will get the cash to repay the loan.

Your repayment plan must be detailed and should contain verifiable information. If you are using a personal loan to start a business or expand it, you should repay the loan from increased turnover and a higher profit margin.

If you are borrowing money to fund a specific contract, you should pay off the loan after you get your cheque from the people giving you the contract. If you are taking a long-term loan, you should state if you will make payments monthly or quarterly. Give your banker specific information and you will be more likely to get the loan.

Related: 13 Simple Ways to Get Out of Debt

Credit history

Many banks and finance lenders are impressed if you have a positive credit history. If you have taken out loans in the past and repaid them successfully, this will count in your favor. In case you have enjoyed credit facilities in the past, include this in your plan. Once the bank verifies that you are telling the truth, you will easily get the loan.

Note that banks have ways of getting information from other banks. If you took a loan from another bank in the past and you defaulted, your present banker will find out. Do not lie to your banker and do not make any unsubstantiated claims.

Making the Loan Secure

A secured loan comes with collateral and a personal loan doesn't. In simple English, collateral means a borrower's pledge of property to a lender. This collateral secures the loan in the sense that if the borrower defaults, the lender can sell the collateral and recover the loan.

Collateral takes many forms depending on the amount of money you want to borrow. In most cases, banks accept land and real estate as collateral. Other acceptable forms of collateral are cars, machinery, share certificates, and valuable equipment.


What is a secured personal loan?

A secured personal loan is a type of loan where the borrower puts up collateral, such as a savings account, car, or property, to secure the loan. This provides the lender with a sense of security in the event that the borrower is unable to repay the loan, as they can seize the collateral. Secured personal loans typically have lower interest rates and more favorable repayment terms compared to unsecured personal loans.

Who is eligible for a secured personal loan?

Eligibility for a secured personal loan can vary from lender to lender, but generally, borrowers with good credit scores, stable income, and a valuable piece of collateral may be eligible. The lender will consider factors such as the value of the collateral, the borrower's credit history, and their debt-to-income ratio.

What types of collateral can be used for a secured personal loan?

Collateral used for a secured personal loan can vary depending on the lender, but common forms of collateral include savings accounts, vehicles, real estate, and investment accounts. The value of the collateral must be sufficient enough to cover the amount of the loan, and the lender will typically hold the title or ownership of the collateral until the loan is repaid in full.

Is a Secured Personal Loan Right for You?

A secured loan is a loan in which the borrower pledges collateral to secure the debt. The collateral may be a car, a home, or any other asset of value. If the borrower fails to make payments on the loan, the lender may seize the collateral to repay the debt.

Whether a secured personal loan is right for you will depend on your individual financial situation and goals. It's important to carefully consider the risks and benefits before taking out a secured personal loan, and to make sure that you understand the terms and conditions of the loan.

Secured loans have less interest, but they also come with a degree of risk. The majority of personal loans are unsecured, so your creditworthiness is the determining factor. A secured loan is one option if you can't get an unsecured loan or don't get the rate you desire on a bad-credit loan.

Best for Bad Credit
Best for Fair Credit
Best for Good Credit
Best for Bad Credit
Best for Fair Credit
Best for Good Credit
  • Min Credit Score: 560
  • APY: 8.49% to 35.97%
  • Loan Amount: $1,000 to $50,000
  • Min Credit Score: 600
  • APY: 6.70% to 35.99%
  • Loan Amount: $1,000 to $50,000
  • Min Credit Score: 650
  • APY: 8.99% to 25.81%
  • Loan Amount: $5,000 to $100,000
Best for Bad Credit
Best for Bad Credit
  • Min Credit Score: 560
  • APY: 8.49% to 35.97%
  • Loan Amount: $1,000 to $50,000
Best for Fair Credit
Best for Fair Credit
  • Min Credit Score: 600
  • APY: 6.70% to 35.99%
  • Loan Amount: $1,000 to $50,000
Best for Good Credit
Best for Good Credit
  • Min Credit Score: 650
  • APY: 8.99% to 25.81%
  • Loan Amount: $5,000 to $100,000
Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of Smarts, a personal finance site helping you easily explore your best money options. He helps readers follow the smart money in order to increase their earning potential and start building wealth for the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Business Insider, Yahoo! Finance, NASDAQ, Discover, and more.
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