Secured Loan

A secured loan is a type of loan that requires the borrower to provide collateral to back the loan. The collateral can be a property, vehicles, or other valuable assets. This collateral reduces the lender’s risk and often results in lower interest rates compared to unsecured loans. In the event of default, the lender can seize the collateral to recover the loan amount. 

An effective loan management software can help track collateral values, loan-to-value ratios, and monitor payment status. This ensures proper risk assessment and asset management throughout the loan lifecycle.