A pledge given by a borrower to repay the bank for its loan is sufficient to classify the loan as a secured debt.

Name: A pledge given by a borrower to repay the bank for its loan is sufficient to classify the loan as a secured debt.
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A pledge or promise to repay a loan does not necessarily make it a secured debt. Secured debt is backed by collateral that the lender can seize in case of default. Without collateral, the loan is considered unsecured.

A Pledge Given by a Borrower to Repay the Bank