Secured Loans

Secured loans are those where the borrower secures a personal loan with appropriate collateral (e.g. real estate).

In principle, lenders are free to demand collateral when granting loans - in other words, to secure the loans.

Whether a lender requires collateral depends on the borrower's creditworthiness and the market situation. This is often the case, especially for SMEs and self-employed loans.

However, collateral can also be used to obtain favourable loan conditions, for example. If one owns a property, for example, about 60 % of the market value is accepted as collateral for first-class conditions.