What is the definition of a secured loan?
- Secured loan. A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan.
It is a loan in which you put up collateral to secure the lending companies money. This way if you do not make the payment they have the right to obtain whatever you put as collateral to make up for the money lost.
- A secured loan is a loan backed by collateral—financial assets you own, like a home or a car—that can be used as payment to the lender if you don't back the loan.
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