0
Security for a loan so the loan is secured by property, vs unsecured-more risky for creditor.
Whenever, any borrower intends to raise a loan, or financial advances, either from the Creditor, or from the Banks, any prudent Creditor would like to secure the interest. It is, therefore, that the Creditor would ask to mortgage the property in exchange of financial advances being granted, or sanctioned.
The Borrower, therefore, offers the property by way of "equitable mortgage" so as to secure the interest of the creditor. The very process is called the mortgage. And the property that is being mortgage is called the "collateral security". In case, the Borrower does not repay the debt due and payable, including cost, charges and interest, the secured creditor would be legally entitled to auction the property or sale away and recover the dues. The public sector banks recover the dues by auctioning the property that is equitably mortgaged.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What does the concept of secured debt mean in finance?
Secured debt is a debt that is guaranteed by the use of collateral. If the debt is not repaid, the creditor has the right to take the collateral from the borrower.
What does default mean in personal finance?
Failure to repay a loan
What is Deine finance?
It is German for "Your Finance" and can be used interchangeably with "Personal Finance."
Does CNET offer personal finance software reviews?
CNET offers personal finance software reviews. CNET's personal finance software reviews can be found on the reviews section of their website. Not only does the site have reviews, it also has personal finance software downloads.
What exactly does a personal finance software review mean?
A personal finance software review is a side by side comparison of the various finance software available in the marketplace. The review will allow you to see the pros and cons of using one software product over another based on your specific needs and wants in a finance software.
What does the concept of secured debt mean in finance?
Secured debt is a debt that is guaranteed by the use of collateral. If the debt is not repaid, the creditor has the right to take the collateral from the borrower.
What does default mean in personal finance?
Failure to repay a loan
Is it illegal for a finance company to use a financed vechicle as collateral?
you cannot use it as collateral because you need to hold title of the vehicle however in this case the finance company has the ownership of the vehicle not you.............
How do you finance a vehicle engine?
Personnel loan or by using something else as collateral. You cannot borrow money and use an engine as collateral.
What has the author Matt Schoenfeld written?
Matt Schoenfeld has written: 'Living debt free' -- subject(s): Debt, Finance, Personal, Personal Finance, Religious aspects, Religious aspects of Personal finance 'Managing your money' -- subject(s): Finance, Personal, Personal Finance, Religious aspects, Religious aspects of Personal finance
When was International Personal Finance created?
International Personal Finance was created in 1997.
When was Personal Software Finance created?
Personal Software Finance was created in 2008.
What is Personal Software Finance's population?
Personal Software Finance's population is 7.
In finance collateral deposited with a stockbroker by a client to cover the risk of loss of transactions?
Margin
Can you sell a car and hold the title for collateral?
Of Course! That's what the bank/finance company does!
What is Deine finance?
It is German for "Your Finance" and can be used interchangeably with "Personal Finance."
What is corport finance?
I take personal finance class.
