Secured loans are where in addition to the credit agreement the lender takes a charge over an asset, usually a property, and in the event that the borrower fails to repay the loan in the agreed manner the lender can take possession of the borrower's property in order to recover the outstanding loan amount.

This is any form of borrowing, such as a credit card or overdraft where the lender does not require security against the repayment other than the signing of a credit agreement in which the borrower agrees to repay the loan in the agreed manner.