The personal piece is the obvious part: it's a loan made to an individual for a personal purpose. It doesn't really matter what that purpose is. It could be to pay down bills, buy a new flat-screen TV, pay a security deposit, or start a business. The key characteristic is that you use it personally.
The second part is that the loan is secured, or collateralized. This means that the borrower must pout something up as collateral against the loan. For example, in a mortgage, the buyer receives a loan, but the bank has the home to secure that loan. You must secure this personal loan with an object of value.
There are also unsecured personal loans available, but secured loans are generally chosen for a reason: they are often used by those with les than perfect credit who are unable to get the unsecured variety of loan.
What kind of loan durations are available?
Secured personal loans are available in many durations, but they are most commonly considered short-term loans. They can usually be paid off without penalty at any time, and might range in age from six months to several years.
Where can I get a secured personal loan?
You can find a secured loan through a wide variety of lenders, but to avoid any problems down the road, you are far better off to choose a well-known and respected lender, even if it does mean paying an extra 0.5% interest rate on the loan. Over the short period of time that the loan is outstanding, it won't mean much to the bottom line anyway.
So specifically, where can I find a secured personal loan?
Specifically, any finance company that is well known! In this time of bank collapse, a wise move would be to go with a buyer of failed banks, as it shows that they have a lot of cash on the balance sheet, so two good options include Capital One, CitiFinancial, and Bank of America.
Regardless of which lender you choose, be sure that you are aware of all the details before agreeing to the loan terms and signing the loan document.
