Secured Loans

For the first the debtor seeks for the collateral which is to be pledged for the loan. Then the debtor makes the agreements with the creditor to lay him the loans. The creditors sees the assets that is going to be pledged by the debtor. Then he decides to give him the loan by that collateral, here the collateral is checked for its life, i.e, its lifetime should be more then the maturity period of the loan.
Now the related manager estimates the price of asset that is going to pledged in the maturity time of the loan. After finding its value in its maturity, now starts the private policy of the company. That is to say how much of the worth asset should be provided to the creditor. This differs to the type of asset and the terms of the company. After the proposal of company of providing a stated amount of money and if the debtor is convinced with the creditor , door of secured loan is opened.