Question

18 which of the following is considered a secured loan?
personal loan
mortgage loan
credit card
student loan

Explanation:

Define secured and unsecured debt

A secured loan is backed by collateral, which is an asset the lender can seize if the borrower defaults. An unsecured loan is not backed by any collateral.

Analyze the given options

• Personal loan: Typically unsecured, based on creditworthiness.
• Mortgage loan: Secured by the home being purchased. If the borrower defaults, the lender can foreclose on the property. This relates directly to the Home Buying Process.
• Credit card: A form of revolving, unsecured credit.
• Student loan: Typically unsecured, backed only by a promise to pay.

Identify the correct choice

Since a mortgage loan is backed by real estate as collateral, it is a secured loan.

Answer:

• Personal loan
• Mortgage loan (Correct answer)
• Credit card
• Student loan