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A secured loan is a loan that is protected by some sort of asset or collateral. This collateral may be the item purchased with the loan, such as a car or a home. If the borrower fails to repay the loan, the lender can put a lien on the property until the loan is repaid in full. Secured loans are low-risk for the lender, though the stakes can be high for the borrower. They are useful if you should need to borrow a large sum of money quickly.