Secured loan: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "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 m...") |
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A home loan is a great example. The Lender gives you money; you grant the lender a [[mortgage]] over the title to your house. | 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 interest]]s of course: [[title transfer collateral | Not all forms of [[collateral]] are [[security interest]]s of course: [[title transfer collateral arrangement]]s, for very good example. So something can resemble a secured loan without actually being one. | ||
A [[repo]] resembles a [[secured loan]], but isn’t | A [[repo]] resembles a [[secured loan]], but isn’t either secured or, for that matter, a [[loan]]. Likewise, a [[stock loan]] is not a loan and nor is it secured, unless you are using the new [[pledge GMSLA]] form, in which case it is secured, but still is not a loan. | ||
Revision as of 13:03, 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 either secured or, for that matter, a loan. Likewise, a stock loan is not a loan and nor is it secured, unless you are using the new pledge GMSLA form, in which case it is secured, but still is not a loan.