Secured loan

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Secured Loan

A loan with collateral. That is, the borrower pledges a property or other asset to the creditor and states that the creditor may take ownership if the borrower defaults on the loan. Sometimes the creditor even takes possession of the collateral, though this is not always the case. A common example of a secured loan is a mortgage, in which the lender has the right to take ownership of the real estate purchased with the mortgage if the property owner does not make payments in a timely manner. In corporate finance, all secured loans must be repaid before any unsecured loans are repaid.

Secured loan.

A secured loan is a loan that's guaranteed with collateral, such as a home or car. If you default and fail to make payments on time, the lender can take possession of your collateral and sell it to recover the loan amount.

In most cases, lenders charge a lower interest rate on a secured loan than on an unsecured loan of comparable size. An unsecured loan is guaranteed only by your promise to pay, not by collateral.

References in periodicals archive ?
says it has secured loans for a total of $210 million as the ailing retailer continues to prop up its business.
6 billion portfolio of first lien senior secured loans outstanding at par plus accrued and unpaid interest and fees from the SSLP.
uk believes that secured loans have the potential to be of even greater value, flexibility and convenience than standard personal loans.
Shawbrook Bank, for med by the merger of three existing lenders and backed by RBS Equity Finance, will offer secured loans to businesses as well as savings accounts and secured loans to individuals.
Target came highly recommended as experts in their field with a vast amount of experience in the secured loans market.
Burnt by losses from the US "sub-prime" disaster, where high-risk loans have led to record bad debts, lenders have slashed rates on secured loans - those for which you have to put up your home as security.
Secured loans enable people who already have a mortgage on their home to take out a second secured loan, which is often used for home improvements, such as building a conservatory or installing a new kitchen.
Missing payments on mortgages or secured loans could lead to arrears and possibly repossession.
MIDLANDERS with bad debts have been urged to consider secured loans to drag themselves out of the financial mire.
Thousands of people signed an online petition calling on the multi-millionaire maths whiz to stop promoting secured loans on TV.
Lenders act with more confidence over secured loans - the interest rate is generally less, while you may be able to borrow more and for longer.
CPAs are currently allowed to accept home mortgages, loans not material to the borrower's net worth and other secured loans (except those guaranteed by a member's firm that are otherwise unsecured).