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What is a sercured loan

1 Answer

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Answer:

Secured loan is as below

Step-by-step explanation:

A secured loan is money that you borrow by offering an asset as collateral. The lender will hold on the asset until the full loan amount is paid back. A secured loan is a good option when borrowing a large amount of money. It attracts low-interest rates.

Lenders consider secured loans less risky because the customer provides a valuable asset as a back-up should they fail to repay. Homes and land are the most common properties used as collateral for secured loans.

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