Which of the following is considered a secured loan?Personal loanStudent loanMortgage loanCredit card
Question
Which of the following is considered a secured loan?Personal loanStudent loanMortgage loanCredit card
Solution
The mortgage loan is considered a secured loan. This is because the loan is secured against an asset, in this case, the property that the borrower is buying. If the borrower fails to repay the loan, the lender can take possession of the property to recover the loan amount. The other options - personal loan, student loan, and credit card - are typically unsecured loans, meaning they are not backed by any collateral.
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