To get a secured loan you need to have some collateral
, and in exchange you'll enjoy lower interest rates.
Interest rates are largely decided by the level of risk the lender is taking with your loan. By offering some form of collateral the lender has a way to retrieve the money one way or another and because of this your interest rate lowers.
You have a number of collateral options. The most common thing to use is your home, the next most common being your vehicle. In either of these cases you can go on using your property as normal. You sign a note stating that in the case you fail to make your payments your property will be forfeit and the lender will sell it to make up the money you owe. It's good to note that the only kind of secured loan that banks will usually do are second mortgages.
If those forms of collateral don't work for you, you can still get a secured loan using jewelry or other possessions of value. When you do this the lender will typically hold the item in a safe until the amount is repaid in full.
Of course, to use any item as collateral you'll need to have an appraisal done to show the lender the item will be able to make up the borrowed amount if necessary.
The low interest rate is certainly reason enough to go with this form of financing, but there are other benefits. If you need to lengthen the timeline for repayment, or require other options or flexibility from your lender they will be much more willing to work with you when they have some form of collateral.
For the best interest rates and most flexibility from your lender, get a secured loan.