We appreciate the significance and worth of our assets in situations when we are in dire need of finances to gratify our needs. A secured loan is one of the most popular means adopted by people owning valuable assets to meet deficits in their finances.

Secured loans are provided against a 'security' offered by a borrower. The security may be any valuable asset, usually a home. The amount of loan granted depends upon a number of factors, such as:

* Equity in the property
* Repayment capability of the borrower
* Personal circumstances of the borrower

Note: One can borrow up to a sum equivalent to 125% of the property value

Secured loans present quite an affordable option for arranging finance. This is because secured loans carry a lower interest rate as compared to the unsecured loans. As a result, you can save a lot of money in the long run. You can further save money by selecting a secured loan deal after comparing loan offers of different lenders on the basis of the applicable APRs. A good credit rating also helps a lot in bargaining for a favourable deal from a lender. Your credit rating reflects your financial credibility. A good credit score instills confidence in the lender that he/she can rely on the borrower for timely repayment of the loan. So, get your credit score ready if you are planning to take out secured loans. You should try to avoid taking secured loans from those lenders who charge exorbitant arrangement fees. This is also an effective strategy to save money. There are a number of reasons for the popularity of secured loans. These include: