Okuzeka
Finance & Banking vocabulary · Loans & Credit

Secured loan

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, secured loan means: A loan backed by an asset, such as a house, car or deposit, that the lender can take and sell if the borrower does not repay.

In Turkish: teminatlı kredi

How it is used

Used in credit policy and loan products. Mortgages and car loans are typical secured loans. Because the bank holds collateral, secured loans usually have lower rates and higher amounts than unsecured loans. Bankers say a loan is 'secured on' or 'secured against' a property.

Example sentences

  1. A secured loan against your apartment would give you a lower rate.

  2. Nearly all of our SME portfolio consists of secured loans backed by property or vehicles.

Common collocations

  • secured loan
  • secured on a property
  • fully secured
  • secured lending
  • unsecured loanA loan given without collateral, based only on the borrower's income and credit history. It usually has a higher interest rate than a secured loan.
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.
  • mortgageA long-term loan used to buy a home or other property. The property secures the loan, so the lender can have it sold if the borrower does not repay.
  • guarantorA person or company that promises to repay a loan if the borrower cannot. The lender can then ask the guarantor to pay.

More terms: Loans & Credit

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.