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

Example Sentences

Of the government relief funding provided to Alaska, it has repaid a secured loan of $135 million.

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They also beat competition for centre-back Nathalie Bjorn from Everton and secured loan moves for several youngsters.

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With a secured loan you need capital, such as a car or house but they can be a great way to pay off your debt while working on your credit.

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One of the best ways to get approved for a secured loan is to provide a down payment of at least 10%, says Michael Lax, executive vice president and head of RV Marine Sales at Bank of the West.

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Lending decisions are based on creditworthiness, income and existing debt, but annual percentage rates may be higher and repayment terms shorter, compared with a secured loan.

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