Access Point #: SS.912.FL.4.AP.3 (Archived Access Point)


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Explain the difference between secured and unsecured loans as they relate to collateral, risks and interest rates.
Number: SS.912.FL.4.AP.3 Category: Access Points
Date Adopted or Revised: 05/23 Standard: Using Credit

Related Benchmarks

Name Description
SS.912.FL.4.3 (Discontinued after 2023-2024): Explain that loans can be unsecured or secured with collateral, that collateral is a piece of property that can be sold by the lender to recover all or part of a loan if the borrower fails to repay. Explain why secured loans are viewed as having less risk and why lenders charge a lower interest rate than they charge for unsecured loans.



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