If you have received offers for personal loans that require collateral, here is some helpful information on what that means.
Most personal loans are offered as either secured or unsecured loans. Secured loans are often referred to as collateral loans, because they require that you offer something of value that you own in the event that you default on your loan. Typically, this is your vehicle. As a borrower, you may have a better chance of getting approved for a secured loan, because the collateral protects the lender against losing money.
Each lender is a little different on what they will allow for collateral so be sure to verify with them before finalizing the application.