A Secured loan is a financial vehicle that provides you with funds that are secured by a piece of real property or an asset belonging to the borrower. The property used to secure the loan can be anything of equal or greater value than the loan. Commonly, loans are secured to the value of a piece of real estate. A secured loan will normally include a deed of trust that is used to detail the terms of payment and the rights of both the lender and the borrower. When a loan is secured to a piece of real property, the deed of trust must be filed with the recorder in the county in which the real estate is located.

Since the loan is secured it will normally have a number of benefits over an unsecured loan. These benefits include a lower interest rate, a fixed term for repayment, and in many cases the loan interest is tax deductible.