Current Secured Loans Payable
<p >A <b>secured loan</b>, is a <a href="https://en.wikipedia.org/wiki/Loan" title="Loan" >loan</a> in which the borrower pledges some asset (e.g. a car or property) as <a href="https://en.wikipedia.org/wiki/Collateral(finance)" title="Collateral (finance)" >collateral</a> for the loan, which then becomes a <b>secured debt</b> owed to the creditor who gives the loan. The debt is thus secured against the collateral — in the event that the borrower <a href="https://en.wikipedia.org/wiki/Default(finance)" title="Default (finance)" >defaults</a>, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally loaned to the borrower, for example, <a href="https://en.wikipedia.org/wiki/Foreclosure" title="Foreclosure" >foreclosure</a> of a home. From the creditor's perspective this is a category of <a href="https://en.wikipedia.org/wiki/Debt" title="Debt" >debt</a> in which a lender has been granted a portion of the <a href="https://en.wikipedia.org/wiki/Bundle_of_rights" title="Bundle of rights" >bundle of rights</a> to specified property. If the sale of the collateral does not raise enough money to pay off the debt, the creditor can often obtain a <a href="https://en.wikipedia.org/wiki/Deficiency_judgment" title="Deficiency judgment" >deficiency judgment</a> against the borrower for the remaining amount.
The opposite of secured debt/loan is <a href="https://en.wikipedia.org/wiki/Unsecured_debt" title="Unsecured debt" >unsecured debt</a>, which is not connected to any specific piece of property and instead the creditor may only satisfy the debt against the borrower rather than the borrower's collateral and the borrower. Generally speaking, secured debt may attract lower interest rates than unsecured debt due to the added security for the lender; however, credit history, ability to repay, and expected returns for the lender are also factors affecting rates.<sup id="cite_ref-McCormack2004_1-0" class="reference" ><a href="https://en.wikipedia.org/wiki/Secured_loan#cite_note-McCormack2004-1" >[1]</a></sup> The term 'secured loan' is used in the United Kingdom, while in the United States it is more commonly known as 'secured debt'.</p>