Secured loans are those which are granted against the security of tangible assets, like stock in trade and immovable property.
There are various types of securities which are accepted for giving secured loans:
(a) Tangible assets such as plant and machinery, motor vehicles, etc.
(b) Document of title to goods, like Railway Receipt, Bills of Exchange, etc.
(c) Financial securities (Shares and Debentures)
(d) Life insurance policy
(e) Real estates (land, building, etc.)
(f) Fixed deposit receipt (FDR)
(g) Gold ornaments, jewellery, etc.
