Collateral

A thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

• Loan
• Credit

Another word for credit is a loan

• TRUE
• FALSE

A loan in which the borrower pledges some asset

• Unsecured Loan
• Secure Loan

Is not protected by any collateral. If you default on the loan, the lender can't automatically take your property.

• Unsecured Loan
• Secure Loan

refers to asset the borrower has that could be taken by the lender if the borrower fails to repay.

• Condition
• Character
• Capacity
• Collateral