Personal loans are usually unsecured; so you don't require collateral to get your loan approved. But a secured personal loan requires collateral, which is used to cover the risk the lender takes when offering loans.
What Collateral Can Be Used for a Personal Loan?
For an unsecured personal loan, collateral isn't required. but you can use items of value to increase your likelihood through a secured loan. The collateral chosen should be valuable, and your lender should accept it.
Most lenders accept collaterals like vehicles, real estate, investments, etc. Each lender will have varying requirements regarding accepting collateral. Thus, you must talk to your lender about the collateral options you can use to take a personal loan.
Collateral Requirements for Personal Loans in Major Banks & Credit Unions
Secured personal loans are normally used for borrowers with average to low credit scores. Those with stellar credit scores can get personal loans without using collateral. Different lenders will have varying collateral requirements.
As a result, it's important to confirm with your lender whether they accept car titles, jewelry, trailers, investments, art, collectibles, and more. Here's a look at a few lenders and their respective collateral requirements.
| Lender | Cash Account | Car Title | Art/Collectibles/Jewelry | Investment Account |
| Regions Bank | Yes | Yes | No | No |
| PNC | Yes | Yes | No | No |
| Wells Fargo | Yes | No | No | No |
| Fifth Third Bank | Yes | No | No | Yes |
| Navy Federal Credit Union | Yes | No | No | Yes |
| First Tech Federal Credit Union | Yes | No | No | Yes |
| TD Bank | Yes | No | No | No |
| KeyBank | Yes | No | No | Yes |
When using collateral to take a personal loan, you should be mindful about how you use the collateral since lenders will use your valuables to recover the loan in case you default.