BANKING AFFAIRS

Detailed explanation-1: -Secured loans are loans that are secured by a specific form of collateral, including physical assets such as property and vehicles or liquid assets such as cash. Both personal loans and business loans can be secured, though a secured business loan may also require a personal guarantee.

Detailed explanation-2: -A collateral loan, also called a secured loan, means that a lender accepts an asset of yours as “backing” for a loan in case you default on the loan. Mortgages are also secured loans, which means that the real estate property is used as collateral on the loan.

Detailed explanation-3: -A secured loan is a loan backed by collateral. The most common types of secured loans are mortgages and car loans, and in the case of these loans, the collateral is your home or car.

Detailed explanation-4: -In a secured loan, the lender has a legal claim against a borrower’s assets. If the borrower defaults, the lender can convert the assets to cash to be repaid. The assets in a secured loan are referred to as collateral. Different types of loans are typically secured by different types of assets.

Detailed explanation-5: -A secured loan, also referred to as a collateral loan, is a loan backed by property or collateral. Secured loans differ from unsecured loans by the amount of risk the loan puts on both the lender and the borrower.