Secured personal loans require borrowers to provide collateral which can be any item that is valued at least as the amount they want to borrow. Collateral requirements depend on the lender but generally, vehicles, real estate, investments, and jewelry, amongst other valuable items are accepted as collateral. Some lenders only accept certain kinds of items as collateral while others are more flexible.
What Can Be Used as Collateral to Get Personal Loans?
Here is a list of some of the items that major lenders mostly accept as collateral to get personal loans:
- Cars
- Boats
- RVs
- Trailers
- Money from a savings account
- Investment account
- Upcoming paychecks
- Real estate
- Jewelry
- Art
- Collectibles such as coins
When you take out a secured personal loan, most lenders accept cash as collateral from an investment or a savings account and not many lenders accept other kinds of collateral. And so borrowers who are looking to consolidate debt to pay lower interest rates would benefit the most from getting a secured personal loan. You need to keep in mind that each lender has its own collateral requirements for personal loans.
What Are the Personal Loan Collateral Requirements for Major Banks & Credit Unions?
| Lender | Car Title | Investment Account | Savings Account | Art or Jewelry or Collectibles |
| Regions Bank | Yes | No | Yes | No |
| Wells Fargo | No | No | Yes | No |
| PNC | Yes | Yes | Yes | No |
| Navy Federal Credit Union | No | Yes | Yes | No |
| First Tech Federal Credit Union | No | Yes | Yes | No |
| KeyBank | No | Yes | Yes | No |
| TD Bank | No | No | Yes | No |
| Fifth Third Bank | No | Yes | Yes | No |
Getting a secured personal loan can be a good idea if you have bad credit your loan will be approved quickly with collateral. On the other hand, if you have a high credit score, you can consider applying for an unsecured personal loan that doesn't need collateral which will take away the risk of losing your item of value if you fail to make the payments on time.
Conclusion
To get an unsecured personal loan, lenders require borrowers to put an item of value as collateral whose value should be equal to or more than the amount you borrow. Different personal loan lenders have different requirements for the kind of collateral they accept, and most lenders accept an amount from a savings account or an investment account. If it happens that you default on the loan, you might end up losing the item or the amount of money you put as collateral as the lender would be using it to pay for the loan.