Secured loan: Difference between revisions
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Revision as of 13:01, 3 December 2018
A loan where the borrower grants the lender a security interest over its property to mitigate the credit risk.
A home loan is a great example. The Lender gives you money; you grant the lender a mortgage over the title to your house.
Not all forms of collateral are security interests of course: title transfer collateral arrangements for very good example. So something can resemble a secured loan without actually being one.
A repo resembles a secured loan, but isn’t one.