A "secured" loan is one
A) with no stated collateral.
B) that is pending approval by a bank loan committee.
C) which has collateral.
D) in which the borrower is delinquent in loan payments but has not formally defaulted on.

Question

Quizplus · Accepted Answer

A "secured" loan is one in which the borrower pledges collateral, such as a car or a house, as a guarantee of repayment. Therefore, Option C, "which has collateral," is the correct answer. Option A, "with no stated collateral," is the definition of an unsecured loan. Option B, "that is pending approval by a bank loan committee," is not a definition of a secured loan. Option D, "in which the borrower is delinquent in loan payments but has not formally defaulted on," is not related to whether or not a loan is secured.

A "Secured" Loan Is One