Secured Loan Calculator – Home, Car & Debt Consolidation Loans

The secured loan calculator helps you estimate monthly payments, total interest, and amortization schedules for secured loans including home loans, auto loans, personal loans against collateral, and secured debt consolidation loans. Calculate loan affordability, compare secured versus unsecured options, and understand how Security Bank and other lenders structure secured lending with collateral-backed financing at competitive interest rates.

🏦 Calculate Secured Loan Payments

Select loan type and enter details

Loan Amount

Principal amount to borrow

Annual Interest Rate (%)

Current market rate

Loan Term (Years)

Repayment period

Collateral Value (Optional)

Property/asset value securing loan

Your Loan Calculation

Monthly Payment

₱0

Total Interest

₱0

Total Amount Payable

₱0

Loan-to-Value (LTV)

Loan Summary

Description	Amount
Principal Loan Amount	₱0
Interest Rate (Annual)	0%
Loan Term	0 years
Number of Payments	0
Monthly Payment	₱0
Total Interest Cost	₱0
Total Payable	₱0

What is a Secured Loan?

A secured loan is a form of debt backed by collateral—an asset such as property, vehicle, or savings account that the lender can seize if you default on loan payments. Because the lender's risk is reduced through collateral security, secured loans typically offer lower interest rates, higher borrowing limits, and more flexible terms compared to unsecured loans. Common types include mortgages (secured by real estate), auto loans (secured by vehicles), and secured personal loans (backed by savings, investments, or other valuable assets).

Key Characteristics of Secured Loans:

Collateral required (property, vehicle, or other valuable asset)
Lower interest rates than unsecured loans (typically 3-8% vs. 10-18%)
Higher borrowing limits based on collateral value
Longer repayment terms available (up to 30 years for mortgages)
Risk of asset loss if you default on payments
Easier approval for borrowers with lower credit scores
Fixed or variable interest rate options

Secured Loan Payment Calculation Formula

Understanding the mathematical formula behind loan payments helps you verify calculations and plan finances:

Monthly Payment Formula (Amortization)

Standard Loan Payment Formula:

M = P × [r(1+r)^n] / [(1+r)^n - 1]

Where:

M = Monthly payment
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (years × 12)

Total Interest Formula

Calculate Total Interest Paid:

Total Interest = (M × n) - P

Total paid minus principal equals interest cost

Loan-to-Value (LTV) Ratio

Calculate LTV Percentage:

LTV = (Loan Amount ÷ Collateral Value) × 100

Lower LTV ratios typically qualify for better interest rates

Example Calculation:

Given: Loan = ₱1,000,000, Rate = 6.5% p.a., Term = 20 years

Calculation:

Monthly rate (r) = 6.5% ÷ 12 = 0.5417% = 0.005417

Number of payments (n) = 20 × 12 = 240 months

M = 1,000,000 × [0.005417(1.005417)^240] / [(1.005417)^240 - 1]

M = 1,000,000 × 0.007453 = ₱7,453 per month

Total Paid = ₱7,453 × 240 = ₱1,788,720

Total Interest = ₱1,788,720 - ₱1,000,000 = ₱788,720

Security Bank Loan Calculators (Philippines)

Security Bank Philippines offers various secured loan products with competitive rates and flexible terms:

Security Bank Home Loan Calculator

Security Bank provides housing loans with the following features:

Loan Amount: Minimum ₱1 million, up to 80-90% of property value
Interest Rates: Competitive market rates (typically 6-9% depending on terms)
Loan Terms: Up to 20 years maximum
Income Requirement: Minimum annual income of ₱600,000
Joint Borrowers: Combined minimum monthly income of ₱50,000
Debt-to-Income Ratio: Maximum 40% of gross monthly income
Award Recognition: Home Loan Product of the Year 2019 (Asian Banking & Finance Awards)

Security Bank Auto Loan Calculator

Car financing options from Security Bank include:

Vehicle Types: Brand new and pre-owned cars
Down Payment: Typically 20-30% of vehicle value
Interest Rates: Competitive rates based on vehicle age and term
Loan Terms: Up to 5 years for new cars, 3-4 years for used
Quick Processing: Fast approval for qualified applicants

Security Bank Personal Loan Calculator

Personal loans secured against deposits or other collateral:

Loan Amount: Up to 95% of deposit value (for deposit-backed loans)
Lower Rates: Significantly lower rates than unsecured personal loans
Flexible Use: For any purpose—home improvements, education, business
Retain Asset: Keep using your deposit/collateral while borrowing against it

Secured Debt Consolidation Loans

Secured debt consolidation combines multiple unsecured debts (credit cards, personal loans) into a single secured loan with lower interest rates:

How Debt Consolidation Works

You borrow a secured loan (typically using home equity) to pay off all existing high-interest debts. Instead of managing multiple payments at 15-25% interest, you make one monthly payment at 6-10% interest secured by your property.

Advantages of Secured Debt Consolidation

Lower Interest Rates: Secured rates 50-70% lower than credit card rates
Single Monthly Payment: Simplifies finances—one payment instead of multiple
Improved Cash Flow: Lower payments free up monthly budget
Fixed Repayment Schedule: Clear timeline to debt freedom
Credit Score Improvement: Paying off revolving credit can boost scores
Tax Benefits: Mortgage interest may be tax-deductible (consult tax advisor)

Risks of Secured Debt Consolidation

Collateral at Risk: Converting unsecured debt to secured puts your home at risk
Longer Terms: Stretching repayment over 15-20 years may increase total interest
Closing Costs: Home equity loans have origination fees and closing costs
Behavioral Risk: Some borrowers re-accumulate credit card debt after consolidation
Reduced Home Equity: Tapping equity reduces your ownership stake

⚠️ Important Debt Consolidation Considerations:

Only consolidate if total interest savings exceeds closing costs
Commit to not accumulating new debt after consolidation
Understand you're converting unsecured obligations into secured debt
Consider alternatives: balance transfer cards, debt management plans, credit counseling
Calculate break-even point to ensure financial benefit
Maintain adequate emergency fund—don't drain all savings

Current Secured Loan Interest Rates (2025)

Interest rates vary by loan type, collateral, credit profile, and market conditions:

Loan Type	Typical Rate Range	Term	LTV Ratio
Home Mortgage (New)	5.5% - 8.0%	15-30 years	Up to 80-90%
Home Equity Loan	6.0% - 9.0%	5-20 years	Up to 80-85%
Home Equity Line (HELOC)	6.5% - 9.5%	5-30 years	Up to 85%
Auto Loan (New Car)	4.5% - 8.0%	3-7 years	Up to 100%
Auto Loan (Used Car)	6.0% - 10.0%	2-5 years	Up to 90%
Secured Personal Loan	5.0% - 12.0%	1-10 years	Up to 95%
Deposit-Backed Loan	2.5% - 5.0%	1-5 years	Up to 95%
Securities-Backed Loan	3.0% - 6.0%	Varies	50-70%
Debt Consolidation (Secured)	6.0% - 10.0%	5-20 years	Up to 80%

Rate Factors: Your actual interest rate depends on credit score (higher scores = lower rates), loan-to-value ratio (lower LTV = better rates), debt-to-income ratio (lower DTI = better terms), loan amount and term (larger loans sometimes get better rates), and collateral type and condition (prime real estate or new vehicles get best rates).

Best Secured Debt Consolidation Loans

Choosing the best secured consolidation loan requires comparing multiple factors beyond just interest rates:

Top Features to Compare

Interest Rate: APR should be significantly lower than debts being consolidated
Closing Costs: Origination fees, appraisal costs, title insurance add to total cost
Loan Terms: Balance lower payments (longer term) against total interest cost
Prepayment Penalties: Avoid loans with penalties for early repayment
Draw Period: HELOC flexibility to borrow as needed vs. lump-sum home equity loan
Fixed vs. Variable: Fixed rates provide payment certainty; variable rates may start lower

Best Secured Loan Providers (General)

Major Banks: Competitive rates, established reputation, existing relationship benefits
Credit Unions: Often offer 0.25-0.50% lower rates than banks, member-focused service
Online Lenders: Streamlined process, quick approvals, competitive pricing
Specialized Lenders: Focus on specific collateral types (auto, home equity)

Qualification Requirements

Credit Score: Minimum 620-640 for most secured loans; 700+ for best rates
Debt-to-Income: Typically below 43%, preferably under 36%
Employment: Stable income history, usually 2+ years in current field
Collateral Equity: Sufficient value and equity in the asset securing the loan
Documentation: Income verification, asset statements, tax returns

Secured vs. Unsecured Loans Comparison

Understanding the differences helps you choose the right loan type:

Feature	Secured Loans	Unsecured Loans
Collateral Required	Yes (property, vehicle, deposits)	No collateral needed
Interest Rates	Lower (3-10% typical)	Higher (10-25% typical)
Borrowing Limits	Higher (based on collateral value)	Lower (based on creditworthiness)
Approval Speed	Slower (requires appraisal)	Faster (no collateral evaluation)
Risk to Borrower	High (can lose collateral)	Lower (credit score damage only)
Credit Requirements	More flexible (collateral reduces risk)	Stricter (relies on creditworthiness)
Loan Terms	Longer (up to 30 years)	Shorter (typically 1-7 years)
Best For	Large amounts, long terms, lower rates	Smaller amounts, flexibility, speed

Advantages of Secured Loans

Lower Interest Rates: Collateral reduces lender risk, resulting in rates 3-8% lower than unsecured loans
Higher Borrowing Limits: Can borrow larger amounts based on collateral value rather than just income
Longer Repayment Terms: Extended terms (15-30 years) make monthly payments more affordable
Easier Approval: Collateral makes approval possible even with imperfect credit history
Credit Building: Successfully repaying secured loans improves credit score significantly
Debt Consolidation: Can consolidate high-interest debt at much lower secured rates
Tax Benefits: Mortgage and home equity loan interest may be tax-deductible
Predictable Payments: Fixed-rate loans provide payment stability for budgeting

Disadvantages and Risks

Collateral Loss Risk: Default means losing your home, car, or other pledged assets
Longer Commitment: Long terms lock you into debt for decades
Total Interest Cost: Lower rates but longer terms may mean more total interest paid
Reduced Liquidity: Collateral tied up and can't be easily sold or used
Closing Costs: Secured loans have significant upfront fees (appraisals, origination, insurance)
Slow Processing: Appraisals and paperwork extend approval timelines
Over-Borrowing Risk: Easy access to large amounts can tempt overspending
Market Value Risk: If collateral value drops, you may owe more than asset worth

How to Apply for a Secured Loan

Follow these steps for successful secured loan application:

1. Assess Your Financial Situation

Calculate debt-to-income ratio (total monthly debts ÷ gross monthly income)
Check credit score (free annual reports from credit bureaus)
Determine borrowing need and realistic repayment capacity
Identify suitable collateral with sufficient value and equity

2. Compare Lenders and Rates

Get quotes from banks, credit unions, and online lenders
Compare APR (includes interest plus fees) not just interest rates
Review loan terms, prepayment options, and customer service quality
Check lender reputation and customer reviews

3. Gather Required Documentation

Government-issued ID (driver's license, passport)
Proof of income (pay stubs, tax returns, bank statements)
Employment verification and history
Collateral documentation (property deed, vehicle title, account statements)
Recent credit report
List of debts and monthly obligations

4. Submit Application

Complete application accurately and honestly
Provide all requested documentation promptly
Respond quickly to lender questions or additional document requests

5. Collateral Appraisal

Lender arranges professional appraisal of collateral
Appraised value determines maximum loan amount
Ensure property/asset is in good condition for best valuation

6. Review and Accept Terms

Carefully review all loan terms before signing
Understand interest rate, payment amount, total cost, and fees
Clarify prepayment terms and any penalties
Sign closing documents and receive funds

Frequently Asked Questions

What is the difference between secured and unsecured loans?

Secured loans require collateral (asset pledged as security) such as property, vehicle, or savings, while unsecured loans rely solely on creditworthiness with no collateral. Secured loans offer lower interest rates (typically 3-10% vs. 10-25%), higher borrowing limits, longer terms, and easier approval even with lower credit scores. However, defaulting on secured loans means losing your collateral, while unsecured loan defaults only damage credit scores.

How much can I borrow with a secured loan?

Borrowing limits depend on collateral value and your debt-to-income ratio. Typically, lenders offer 80-95% of collateral value (loan-to-value ratio). For homes: up to 80-90% of appraised value; cars: up to 100% of value for new, 90% for used; deposits/securities: up to 95% of account value. Your income must support monthly payments, usually requiring debt-to-income ratio below 43%. Example: ₱2 million property could secure ₱1.6-1.8 million loan.

What happens if I can't repay a secured loan?

If you default (typically 90+ days past due), the lender can legally seize and sell your collateral through foreclosure (property) or repossession (vehicle) to recover the debt. The foreclosure/repossession process varies by jurisdiction but generally: 1) Lender sends default notices, 2) Legal proceedings begin, 3) Asset is seized, 4) Asset is sold at auction, 5) Proceeds pay off loan, 6) You may owe deficiency if sale doesn't cover debt, 7) Credit score severely damaged (200+ point drop). Contact lender immediately if having payment difficulties—they may offer forbearance or loan modification.

Are secured debt consolidation loans a good idea?

Secured debt consolidation can be beneficial IF: 1) Interest savings exceed closing costs, 2) You commit to not accumulating new debt, 3) Lower monthly payment significantly improves cash flow, 4) You understand collateral risk. However, risks include converting unsecured debt to secured (putting home at risk), potentially paying more total interest over extended term, and behavioral risk of re-accumulating credit card debt. Best for disciplined borrowers consolidating high-interest debt (20%+) into much lower secured rates (6-8%) who will aggressively pay down the consolidation loan.

What are Security Bank Philippines' loan requirements?

Security Bank Philippines requirements vary by product: Home Loans require minimum ₱600,000 annual income (₱50,000 monthly for joint borrowers), debt-to-income ratio below 40%, minimum ₱1 million loan amount, and property appraisal. Auto Loans need 20-30% down payment, proof of income, and valid identification. Personal Loans require income documentation and may need collateral. All loans require completed application forms, government-issued IDs, income proof (pay slips, tax returns, bank statements), and employment verification. Processing time varies; approval depends on creditworthiness and documentation completeness.

Can I get a secured loan with bad credit?

Yes, secured loans are often available to borrowers with poor credit because collateral reduces lender risk. While minimum credit scores vary (some lenders accept 550-600), expect: 1) Higher interest rates than prime borrowers (add 2-4%), 2) Lower loan-to-value ratios (60-70% vs. 80-90%), 3) Additional documentation requirements, 4) Co-signer may be required, 5) Larger down payments. Credit unions often more flexible than banks. Using deposits as collateral (passbook loans) typically easiest approval. Secured loans also help rebuild credit—successful on-time payments improve credit scores over time.

What's the best secured loan interest rate I can get?

Best rates depend on multiple factors. Current market leaders (2025): deposit-backed loans 2.5-4%, prime mortgages 5.5-6.5%, auto loans (new) 4.5-6%, home equity loans 6-7.5%. To qualify for lowest rates: credit score 750+, debt-to-income below 30%, loan-to-value below 70%, stable employment (2+ years), substantial income, and excellent payment history. Shop multiple lenders—rates vary 0.5-2% between providers. Credit unions often offer 0.25-0.5% better rates than banks. Consider rate locks to protect against increases during approval process.

Alternatives to Secured Loans

Before committing to a secured loan, consider these alternatives that don't put assets at risk:

Unsecured Personal Loans

Higher interest rates but no collateral required. Best for borrowers with good credit needing smaller amounts ($5,000-$50,000) over shorter terms (1-7 years). No risk of losing assets, faster approval, but higher monthly payments due to rates.

Balance Transfer Credit Cards

For debt consolidation specifically, 0% APR balance transfer cards offer 12-21 months interest-free. Transfer high-interest debt and pay aggressively during promotional period. Requires good credit (700+) and discipline to pay off before rate resets.

401(k) Loans

Borrow from retirement savings at low rates (prime + 1-2%). Repay yourself with interest. No credit check, quick approval, but reduces retirement growth and triggers taxes/penalties if you leave job before repayment.

Home Equity Sharing Agreements

Investor provides cash in exchange for percentage of future home value appreciation. No monthly payments or interest, but you share equity gains. Alternative to home equity loans for those who can't qualify or don't want debt.

Peer-to-Peer Lending

Online platforms connect borrowers with individual investors. Competitive rates for good credit, unsecured loans, streamlined process. Rates typically 6-15% depending on credit profile.