secured lending

Secured lending refers to a type of loan or credit that is backed by collateral, such as property, vehicles, or other valuable assets. This security reduces the lender’s risk, often allowing borrowers to access larger loan amounts or lower interest rates compared to unsecured loans. Common examples include mortgage loans, auto loans, and secured business loans. Understanding secured lending is essential for both borrowers and lenders to navigate the terms, risks, and benefits associated with pledging assets to secure financing.