This way, you can be more in control of your finances, repay the loan more easily, and still get the cash you need for your personal needs. In addition to those benefits, you can choose the type of collateral you want to give, allowing you to work within your means.

Cash In Savings Account

When you use the cash in your savings as collateral, you can often get a personal loan in the amount of your total savings. So, the bigger your savings, the bigger the loan you can get. The biggest benefit of this collateral is that you can often get an extended repayment period— up to 15 years. However, this also depends on the lender. They have the right to limit the loan amount to a percentage of your savings. For example, they could only allow you to take 20% of your savings as a personal loan. This is a good move if you want to build or repair your credit. The downside of using savings as collateral is that the lender also has the right to use your savings as compensation should you fail to repay the loan.

Fine Art

Lovers and collectors of fine art can gain thousands, sometimes millions, if they use the art as collateral for a personal loan. This kind of money is life-changing for a lot of people and can be spent on anything from resolving debt, furthering your education, or making other upgrades in your personal life. However, such a high reward also comes with an increased risk. If the lender loses money due to a default, they can sell your art piece as compensation. Likewise, you may need to pay off an increased debt to the lender if they can’t sell the art piece for the estimated value when you took out the loan.


Heirlooms, watches, engagement and wedding rings, and other luxurious jewelry can all be collateral for personal loans. Even genuine gemstones and precious metals fall under this category. This kind of collateral is usually used in cases where you need quick cash for your personal needs. The main challenge, in this case, is finding a lender who will accept jewelry as collateral, as not all of them will. For example, banks tend to accept jewelry only if it has a very high value. However, pawnbrokers that offer short-term loans could be a good solution. Of course, similar to other collateral, the lender reserves the right to keep and sell the jewelry if the loan is not repaid. 

A Car

Car title loans are the type of personal loan most people choose. In this case, the lender can typically give you 80% of your car’s equity as a personal loan. If you’ve got a classic, vintage, or high-value vehicle, you can get enough money for significant life changes like sending your kids off to college or having your dream wedding.  On top of this, you usually don’t have to go far to find a lender that will accept a good car as collateral. Make sure to repay your loan on time, though, as the lender reserves the right to keep your vehicle if you don’t.


Those who invest regularly and have sizeable stocks can easily use them to get large sums of money. The best thing about this type of collateral is that the interest rates are usually low, making it easier to repay the loan.  If you want to buy something more expensive like a new car, or if you’re going to make a new investment, this could be the right choice of collateral for you. Remember that failing to repay the loan can result in the lender keeping your initial stocks, though.


Those who need a more significant sum of money can consider using their home as collateral. In fact, most lenders allow you to take out a loan equal to 80% of the value of your home. With this type of personal loan, you can pay off debt or swiftly solve emergencies of any kind. However, you should be aware that not repaying the loan in full puts your home at risk of foreclosure.


While securing a personal loan with collateral can be daunting, it can be one of the easiest ways to borrow money. Since these loans are relatively common, it’s only natural that you have many different collateral options to choose from. This way, it’s easy and convenient for you to align your personal needs and financial capacity with your intention to be in charge of your financial future.  Author’s bio: John is a financial analyst but also a man of different interests. He enjoys writing about money and giving financial tips, but he can also dive into relationships, sports, gaming, and other topics. Lives in New York with his wife and a cat.


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