There must be risks. If the house is lost, whether it is a bank or a small loan company, if the money is not paid, you can only buy a house cheaply. (At present, there are still small loan companies that specialize in bricks, and they are willing to lend you money again if they can't pay you back, and then sell your house at a low price.)

If the house is secured, you will definitely apply for mortgage registration. Even if you mortgage the house to a bank loan, if you have no repayment ability, the bank will have the right to dispose of your house, let alone the small loan company.