---
title: "Secured loan: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/secured-loan"
description: "A secured loan is a loan backed by collateral, an asset the lender can take if the loan is not repaid. A mortgage and an auto loan are common examples."
---

Loan types

# Secured loan
All lending terms
Definition

A secured loan is a loan backed by collateral, an asset the lender can take if the loan is not repaid. A mortgage and an auto loan are common examples.

A secured loan is tied to a specific asset, called collateral, that the customer pledges as a guarantee of repayment. Because the collateral lowers the lender's exposure, secured loans can sometimes be issued for larger amounts or longer terms than comparable unsecured loans. Common examples include a mortgage backed by real estate, an auto loan backed by the vehicle being financed, and a title loan backed by a vehicle title the customer already owns. If a secured loan goes unpaid, the lender may have the right to take and sell the collateral, a process such as foreclosure or repossession. The opposite arrangement, with no pledged asset, is an unsecured loan.

Source: [Wikipedia](https://en.wikipedia.org/wiki/Secured_loan). This definition is general educational information, not legal or financial advice.
Related

- [Unsecured personal loans](/services/unsecured-personal-loans)
- [Compare: vs. a title loan](/compare/title-loan)
- [Signature loans](/services/signature-loans)
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