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A secured loan is a loan where you will be required to use your property as security against the loan, so the lender is able to balance the risk of lending to you.

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The concept of secured loans in context of mortgage industry can be understood as loan in which the borrower pledges some asset as collateral for the loan. The loan is thus secured against the collateral - in the event that the borrower defaults, the lender takes possession of the asset used as collateral and may sell it to regain the amount originally lent to the borrower.

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