A secured loan is a loan that attaches a lien against an asset. If the debtor defaults on payments the creditor has a claim against the asset. The classic example of a secured loan is a mortgage. A mortgage usually attaches a lien against the property that is being mortgaged. If you default on your payments and don’t restructure or refinance the mortgage the bank can foreclose on the property. Another typical secured loan would be a car loan. If you default on your payments the dealer can reposes your car.