secured loan

[ si-kyoord lohn ]

noun

, Finance.

1. a loan that is backed up by collateral pledged by the borrower, which the lender can sell to cover repayment of the loan if for any reason the borrower is unable to do so:

   A mortgage is the most common type of secured loan, in which the home or property backs up the loan.

Word History and Origins

Origin of secured loan¹

First recorded in 1895–1900