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Potential—measures a borrower's ability to repay a loan employing a ratio to compare their debt to money
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A secured loan ensures that the borrower has put up some asset for a sort of collateral just before getting granted a loan. The lender is issued a lien, that's a proper to possession of home belonging to another person until a personal debt is compensated. Put simply, defaulting with a secured loan will provide the loan issuer the lawful capability to seize the asset that was put up as collateral.
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