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 ?
The bank received awards for Best Secured Loan Provider, Best Notice Account Provider for the fourth consecutive year and Best Fixed Account Provider for the second consecutive year.
The fund seeks to generate current income as well as long-term capital appreciation through senior secured loan investments.
0 billion of CP, the proceeds of which will be used to acquire 'AAA' or 'F-1+' rated asset backed and mortgaged backed securities, purchase assets pursuant to repurchase agreements or make loans secured by assets under secured loan agreements.
The creation of a floorplan receivable occurs when a dealership finances the purchase of inventory from a manufacturer through a secured loan with the inventory acting as collateral.
MHI Hospitality Corporation (NASDAQ:MDH), a US-based investment company that invests in the hospitality industry, has announced the closing of a secured loan with the Premier Bank Inc.
NEW secured loan provider Portal Portfolio has selected loan administration experts Target Group to market and provide customer service for its innovative second charge mortgage product.
whereby any amounts outstanding and unpaid under the Secured Loan Agreement are
But if you are sure you will be able to meet all repayments, a secured loan can work out a lot cheaper than an unsecured one.
According to recent research, however, a significant percentage of people do not realise that defaulting on a secured loan (you know the kind: "Do you have debt problems?
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.
45 billion of additional senior secured loan assets, accessed via CLO structures characterized by long-term, non-recourse financing secured by the specific bank loan portfolios that they own.
25 million debt problems and received 87,000 inquiries about actual or threatened homelessness with a further 51,000 about mortgage and secured loan arrears.