The use of property as collateral is a common way to borrow money. If the borrower fails to fulfill the terms of the loan, the lender may take possession of the property. Prlog.org describes a secured loan as one "given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 60% - 75%."
Do your homework. If you're unable to repay a secured loan, you risk losing your property used as collateral. Weigh the pros and cons prior to applying. Identify the lender that offers the best terms.
Review the eligibility requirements and determine if you are likely to qualify before applying. Eligibility criteria includes income, savings, debts, value of property mortgaged and credit history.
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Complete and submit an application, then wait for the lender's decision.