A secured line of credit is a type of loan that allows borrowers to access funds up to a certain limit, using collateral to back the loan. This collateral can be assets like a home or savings account, which reduces the lender's risk. If the borrower fails to repay, the lender can claim the collateral to recover their losses. This financial product offers flexibility, as borrowers can withdraw and repay funds as needed, similar to a credit card. Interest rates on secured lines of credit are typically lower than unsecured options, making them an attractive choice for those who have valuable assets to pledge.