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Secured loan – It is a loan where by the borrower will pledge his asset like a vehicle or home that may be sold if he is not able to pay back back again the loan.

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Foreclosure – This is the legal approach wherein collateral that has been pledged for the check here loan is usually sold as a way to repay the loan If your borrower defaults.

Co-signer – Somebody who willfully signals a loan arrangement With all the borrower and partly assumes obligation of repayment of the loan.