Collateral and additional security are in easy language both lender and borrower can understand. Secondly, the repayment terms can also be tweaked to some extent with mutual consent between the borrower and the lender. A higher cost of funds may snatch away the whole viability of the project and increase overall risk too. A mortgage loan is a secured loan where the asset under pledge is a property. This is the simple logic behind securities. The borrower may reach a situation where he is not able to pay the loan due to an unfortunate situation or even by will at times. Sanjay Borad is the founder & CEO of eFinanceManagement. What does Secured loan mean? There is always a risk of default however good the borrower’s credentials may be. Even if after everything, the borrower is not able to pay, the lender has the security available with him to liquidate and assure his money. The primary job of a lender is not to seize assets and sell them. Secured loans are loans that are backed by an asset, like a house in the case of a mortgage loan or a car with an auto loan. Still, there are bad secured loans. How to say SECURED LOAN in sign language?  In the examples below, the second word is from Tamil, and its original Indo-Aryan source is placed to the left. One, the lender gets sufficient money by selling to fulfill the balance of the unpaid debt. The term ‘security’ in lending terms commonly understood as creating a temporary right on the asset in favor of the lender. eval(ez_write_tag([[580,400],'efinancemanagement_com-medrectangle-4','ezslot_4',117,'0','0']));Secured loans are categorized into different types as follows. By now, we should have got a fair idea of what is a secured loan? SECURED meaning in tamil, SECURED pictures, SECURED pronunciation, SECURED translation,SECURED definition are included in the result of SECURED meaning in tamil at kitkatwords.com, a free online English tamil Picture dictionary. Thanks for your vote! A lower credit score also suffices when you have security to offer for a secured loan. All words have been referenced with the Madras University Tamil Lexicon, which is used as the most authoritative and standard lexicon by mainstream scholars. They have no choice but to go for secured loans if the need for money is crucial. The numerical value of SECURED LOAN in Chaldean Numerology is: 8, The numerical value of SECURED LOAN in Pythagorean Numerology is: 9. "SECURED LOAN." It is difficult to forecast that unforeseen situation when you would need money. Share it in comments below. This means that the lender can seize the asset and sell it. Only small and medium-sized loans are extended as unsecured loans. Depending on the terms and conditions of a secured loan or if the loan is not a nonrecourse loan, the borrower may be liable to repay with his personal assets also. It is because any individual would not like to not pay and become homeless when the home is seized. What will lender do at that time? It is good for both the borrower as well as the lender. An equipment is a collateral security if the loan is taken for buying this equipment. eval(ez_write_tag([[300,250],'efinancemanagement_com-medrectangle-3','ezslot_3',116,'0','0']));From the borrower angle, secured loans are meaningful because they help them achieve loans at favorable terms and conditions. It is very important to build and maintain credit scores. So, to secure his money he extends loan against security. Although there are more angles do it like the ability to repay, the viability of a project, the income of an individual etc. FINANCIAL MANAGEMENT CONCEPTS IN LAYMAN’S TERMS, Use of this feed is for personal non-commercial use only. There is a tough credit check conducted by the borrowers before extending the loan. Although it is not desirable situation and the process is not so easy also. The secured loans are easy to borrow.