What is the difference between a secured loan and a collateral loan? Is there a difference?
By
jenny
Posted on
04/14/08 Total Answers
2
Answers-
It is the same thing. It means that there is some asset that can be seized to pay the debt. It allows the lender to offer lower rates because they will not have a total loss if the borrower defaults on the loan.
Answer by :
VATreasures On Date
2008-04-14 17:16:42
A collateral loan is when you use something you already own to back up the loan ei. car, cd, home, life insurance policy. A secured loan is a loan on something new like a car or a home. Either way you can lose something if you default on the loan.
Answer by :
missnfl0224 On Date
2008-04-14 17:17:31
