Secured Loans

What valuable possession could you do without if you needed to borrow money? That’s the question to ask yourself if you ever consider taking out a secured loan.

According to Business Day, Capitec Bank’s total personal loan book value is over R40 billion since 2016, with Standard Bank and African Bank not far behind with the second and third largest personal loan books respectively. In a tough economy, it’s no surprise so many South Africans are getting financial assistance. If you need a little extra financial help and are looking at personal loan quotes, have you considered a secured loan?

Secured Loan Basics

A quick breakdown of what a secured loan is, how it works, and the risks to consider.

Definition

A secured loan requires the borrower to offer an asset, such as a car or property, as collateral. This asset secures the loan until it is fully repaid, at which point the borrower regains full possession.

Legality

Secured loans are completely legal. Lenders take a calculated risk by lending money and may initiate repossession if the loan is not repaid and there’s no insurance on the loan.

Advantages

Because the lender’s risk is lower, secured loans may allow for larger loan amounts and longer repayment periods. The lender also does not take physical possession of the asset during the repayment period.

Disadvantages

The borrower risks losing a valuable asset if unable to repay the loan. For example, a student using a car as collateral for a study loan risks losing the car if unable to repay.

Practical Note

Using loans wisely can alleviate financial pressure. For those looking to compare personal loan options, tools like comparison websites can provide quotes quickly, helping borrowers make informed decisions before committing.

Compare before you commit

SA’s Leading Comparison Site

Once you go Hippo, you don’t go back. Just ask these customers:

Used twice over the last week to get quotes for different scenarios. Both times the quotes loaded quickly, there was multiple options and as I had to leave the website, I got a WhatsApp after as well on which I could click the desired option which was nice

Penelope

It was easy because I didn't have to fill in my personal details I only entered my ID number and that was it. The option of having many quotes to choose from one app is really time saving....... WELL DONE HIPPO, WELL DONE ☺️

Moeketsi

I was looking for insurance quotes andhippo managed to show me the most affordable options available for me. It really helped me to make an informed decision about my car insurance.

Anonymous

Independent Service Rating based on 20 704 service ratings.

Compare more than just Personal Loans

With Hippo we make it easy to find great deals across multiple products.

Debt Consolidation

A Debt Consolidation loan merges multiple debts into a single Personal Loan with one monthly repayment, one credit provider and ideally a lower interest rate.

Debt Counselling

Debt Counselling helps over-indebted consumers restructure what they owe into an affordable repayment plan and negotiating with creditors on your behalf.

Funeral Cover

Covers the immediate costs associated with a funeral. Premiums are influenced by your age, number of policy members and amount of cover.

Personal Loans

Compare rates across multiple lenders to find a fair deal. Rates vary based on your credit profile and chosen loan term, so comparison matters.

Medical Aid

Gives you access to private healthcare. Compare plans, benefits and costs to find the right fit without paying for cover you don't need.

Car Insurance

Covers your vehicle against damage, theft and third-party claims. Premiums vary by driving history, usage, vehicle model and where you park overnight.

Medical Gap Cover

Covers the difference (shortfall) between what your Medical Aid pays and what a specialist charges. Gap Cover is not a substitute for Medical Aid.

Medical Insurance

More flexible and affordable than Medical Aid, Medical Insurance covers day-to-day health needs or specific procedures. This product is not a substitute for Medical Aid.

Business Insurance

Protects your business’ property, assets and third-party liability. The right cover depends on the nature, size and risk profile of your operations.

Life Insurance

Provides financial security for your dependants. Ensure your home loan, rental costs, debt and children’s tuition are taken care of when you pass.

Home Contents Insurance

Covers your home's contents against damage, theft and loss. Compare quotes to find the most competitive rate.

Building Insurance

Covers the physical structure of your property against damage. Compare quotes to make sure you're not overpaying.

Motorbike Insurance

Covers your motorcycle against damage, theft and third-party claims. Premiums vary based on your personal profile.

Pet Insurance

Vet bills can add up quickly, especially when unexpected. Compare quotes to find a policy that fits your fur baby’s needs (and your monthly budget).

Travel Insurance

Protects you against unexpected medical and/or flight-related costs when travelling locally or abroad. Premiums vary based on the type of cover you opt for.

Home Fibre

Fibre prices and speeds vary significantly by area and provider. Find the fastest, most affordable package without contacting each provider separately.

Scratch and dent cover

Covers minor cosmetic damage to your vehicle without affecting your Car Insurance claims record. Compare plans to keep your car looking good without paying out of pocket.

Tyre and Rim cover

Covers the cost of repairing or replacing damaged tyres and rims. Compare plans to find affordable cover that protects you against one of South African motoring's most common expenses.

Motor Warranty

Protects you against unexpected mechanical and electrical repair costs after your manufacturer warranty expires. Compare plans to find the right level of cover for your vehicle.

Service Plans

Covers the cost of scheduled vehicle maintenance, including parts and labour. Compare service plans alongside your Car Insurance for a complete picture of your motoring costs.

Vehicle Tracking

Helps protect your vehicles by assisting with recovery in the event of theft. Many providers also use Vehicle Tracking to flag when your vehicle is in an unfamiliar area.

Hippo Comparative Services (Pty) Ltd is an authorised financial service provider.

FSP number: 16357. Block A, Steyn City Capital Park, Erling Road, Riverglen, Dainfern, 2191

*Based on independent research by Kaufman Levin & Associates 2025.

Company

About Blog Contact Us Site Map

Policies

Terms & Conditions Privacy Policy PAIA Manual Marketing Conflict of Interest