what is secured loan ?
Secured Loan
Loan that is collateralized by assignment of rights to property and a Security Interest in personal property or real property taken by the lender. A mortgage borrower (the mortgagor) gives the lender a Mortgage in the property financed. A business loan can be secured by cash, inventory, receivables, marketable securities, or other acceptable Collateral. In event the borrower fails to repay according to the original credit terms, the lender can take legal action to reclaim, and sell, the collateral. Contrast with Unsecured Loan, which is backed only by the borrower's promise to pay-a promissory note. See also Asset-Based Lending; Financing Statement; Security Agreement; Side Collateral.
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Wikipedia Home > Library > Reference > Wikipedia secured loan
A secured loan is a loan in which the borrower pledges some asset (e.g. a car) as collateral for the loan. The loan is thus secured against the collateral — in the event that the borrower defaults, the lender takes possession of the asset used as collateral and may sell it to regain the amount originally lent to the borrower.
As the loan is secured, the lender is relieved of most of the financial risks involved; he may thus offer attractive terms for the borrower on interest rates and repayment period.
One attractive type of secured loan that is normally only available at a bank or credit union is the savings secured loan. In this type of loan, the borrower must have a savings account with the lender. A portion of the money in this account is used as collateral to secure a loan equal to the amount pledged. This money is then frozen in the account but continues to earn interest. As the loan is repaid the secured portion of the savings account is freed. This has advantages for both the lender and the borrower. If the borrower defaults on the loan the collateral is already in the lender's possession so it is a very low risk. As a result, the lender usually offers a much lower interest rate. The disadvantage of this type of loan is that it is limited by the available fund in the savings account.
A mortgage loan is a secured loan in which the collateral is property, such as a home.
A nonrecourse loan is a secured loan where the collateral is the only security or claim the lender has against the borrower, and the lender has no further recourse against the borrower for any deficiency remaining after foreclosure against the property.
A foreclosure is legal process in which mortgaged property is sold to pay the loan of the defaulting borrower.
A repossession is a process in which property, such as a car, is taken back by the creditor when the borrower does not make payments due on the property. Depending on the jurisdiction, it may or may not require a court order.—…
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by
Loan that is collateralized by assignment of rights to property and a Security Interest in personal property or real property taken by the lender. A mortgage borrower (the mortgagor) gives the lender a Mortgage in the property financed. A business loan can be secured by cash, inventory, receivables, marketable securities, or other acceptable Collateral. In event the borrower fails to repay according to the original credit terms, the lender can take legal action to reclaim, and sell, the collateral. Contrast with Unsecured Loan, which is backed only by the borrower's promise to pay-a promissory note. See also Asset-Based Lending; Financing Statement; Security Agreement; Side Collateral.
Quick Secured Loans
Offers from Major Banks for Loan Against Existing Property. Apply !
Apnaloan.in
Apply For a Personal Loan
Fast and Flexible. No Guarantors Up to Rs 10 Lakh. Apply Online Now!
www.citifinancial.co.in
Wikipedia Home > Library > Reference > Wikipedia secured loan
A secured loan is a loan in which the borrower pledges some asset (e.g. a car) as collateral for the loan. The loan is thus secured against the collateral — in the event that the borrower defaults, the lender takes possession of the asset used as collateral and may sell it to regain the amount originally lent to the borrower.
As the loan is secured, the lender is relieved of most of the financial risks involved; he may thus offer attractive terms for the borrower on interest rates and repayment period.
One attractive type of secured loan that is normally only available at a bank or credit union is the savings secured loan. In this type of loan, the borrower must have a savings account with the lender. A portion of the money in this account is used as collateral to secure a loan equal to the amount pledged. This money is then frozen in the account but continues to earn interest. As the loan is repaid the secured portion of the savings account is freed. This has advantages for both the lender and the borrower. If the borrower defaults on the loan the collateral is already in the lender's possession so it is a very low risk. As a result, the lender usually offers a much lower interest rate. The disadvantage of this type of loan is that it is limited by the available fund in the savings account.
A mortgage loan is a secured loan in which the collateral is property, such as a home.
A nonrecourse loan is a secured loan where the collateral is the only security or claim the lender has against the borrower, and the lender has no further recourse against the borrower for any deficiency remaining after foreclosure against the property.
A foreclosure is legal process in which mortgaged property is sold to pay the loan of the defaulting borrower.
A repossession is a process in which property, such as a car, is taken back by the creditor when the borrower does not make payments due on the property. Depending on the jurisdiction, it may or may not require a court order.—…
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by
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