Secured Loans

A secured loan is a loan where the borrower undertakes some asset (eg a car or property)as collateral for the loan is a secured creditor's claim, the granting of the loan. The debt is thus against the collateral - in case the borrower defaults, the lender's assets be used as collateral and sell it to satisfy the debt to recover the amount originally lent to the borrower, which, for example, the exclusion of a house. From the perspective of the creditor, it is a category of debt issued in which the lender a portion of the bundle of rights to certain property. The opposite of secured loans and debts into unsecured loans, not related to a specific property, but the creditor may satisfy the claim against the debtor and not only guarantees the borrower.