# Secured Credit Arrangement

**IRI:** https://folio.openlegalstandard.org/R8qB45AsGZrsWZ5LARtrahR

## Labels

**Preferred Label:** Secured Loan

**Alternative Labels:**

- Collateral Backed Credit
- Collateralized Credit Arrangement
- Secured Financing Arrangement
- Specialty Finance

## Definition

A Secured Credit Arrangement is a financial agreement where the borrower pledges assets as collateral to secure a loan. This collateral reduces the lender's risk, as they have a claim on the asset if the borrower defaults, potentially resulting in lower interest rates and more favorable loan terms for the borrower.

## Sub Class Of

- https://folio.openlegalstandard.org/RfuC0yNDKhOWj8FHvjuYyg

## See Also

- https://folio.openlegalstandard.org/R91z2YCaO3NPH7AupNVyfgd
- https://folio.openlegalstandard.org/RCJWm2dFjUplXz5eRhdcD2k
- https://folio.openlegalstandard.org/RDRM7rFMjRTVI3Dc4ZPYUxU
- https://folio.openlegalstandard.org/RZBGdq2Y9YEuAvMqpgUbGy

**Deprecated:** False