Loans - the word itself flashes images of people having nightmares like they have not been able to repay the amount and have gone bankrupt. Furthermore, they have been made to give up on their property and financial assets.

Now, this thing actually happening to someone is really unfortunate, but then that happens to people. However, if you repay your loans and primarily apply for those with discretion, such day would not dawn upon you. In case you want minimum headache in this context, always go for a secured one.

A secured loan is a kind of loan, where the borrower pledges an asset (car or property) as collateral. Collateral refers to a pledge of a borrower of a particular property to a lender or creditor. This acts as a shield against a borrower's risk of default for the lender. This then transforms into a secured debt, which is owed to the financier or creditor.

The creditor is assured in this situation that he will get the money back, or he or she has the security of the collateral, in case the borrower does not repay the money in the stipulated time period. Such loan has an edge over the unsecured one with regards to the interest rate; it is offered on a lower rate comparatively.

Normally, these are last chance loans for paying an emergency expense. However, this is kind of a trick, as seeking one for another need is seemingly reckless. By doing this, the borrower can lose his car, as well as credibility.

These are sometimes also called auto title loans, as the lender holds one with the car as collateral only on the condition if that is owned by them and is clear with legal title in their possession.

The first thing you would have to do is zero in on the bank or the financial institution, and visit it with the complete details of your car. Confirm if they accept and provide secured loans or line of credit using your car title as collateral. The best part about this is, even if you pledge your car title against one, you can use the car.

However, now the title is not your possession. Now obviously, you will apply for such a loan, only in case they have such facility. Then, you would need to furnish your credentials - name, address, contact number, birth date, etc. Once done with these formalities, you would get a bunch of papers to sign and fill.

Sign, if you agree to all the terms and conditions; let the title be handed over and get the amount. Finally, once you repay it, you would get your car title back. These days, getting loans has become very easy, and you are also lured into applying for one sometimes.

However, these should be avoided as much as possible, unless the situation is extremely critical. They do take away your piece of mind and while gaining the tangible, you might lose the intangible.