Secured loan

Also found in: Wikipedia.

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 ?
Ares Capital Corporation (NASDAQ:ARCC) has closed on a definitive agreement under which Ares Capital purchased the remaining loans of the Senior Secured Loan Fund LLC (the "SSLP"), effectively concluding the joint venture, the company said.
What makes a secured loan different is the way in which the borrower is required to put up collateral to guarantee the loan usually in the form of a home or any other property they own.
7m) senior secured loan from Capital Royalty Partners II LP.
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.
OTC Bulletin Board: DBRM) has received an extension on the same terms for its earlier announced commitment for a USD3,500,000 secured loan.
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.
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.
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.
She said many people did not realise that a secured loan on the arrears could help them not only to restructure repayments, but were often relatively inexpensive compared with other ways of clearing debt.
Money Saving Expert founder Martin Lewis said: "There is a real weight of feeling about secured loan adverts and I hope Carol Vorderman will listen to this feeling.