This means that the lender has a legal right to seize the asset you listed in the event you cannot repay your loan within the agreed repayment terms.īigger loans like home loans may also require you to list a guarantor in case you fail to repay your loan. car, house) as collateral in case you cannot repay your loan. Secured loans are where you are required to offer an asset (e.g. There are two types of personal loans available: secured and unsecured loans.
