Secured LoansFast Action Finance
Secured Loans are loans where the lender has some collateral to secure the repayment of a loan. Title Loans and Collateral Loans are both types of Secured Loans. The difference between the two is that a Title Loan’s limit is typically $5,000 with a term of at least one year and the borrower gets to keep and drive their vehicle pledged as security. On the other hand, a Collateral Loan is where the lender physically holds the collateral being pledged during the term of the loan and the maximum term of the loan is usually no longer than four months. The amount lent in a Collateral Loan typically does not exceed $25,000.