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.
Subject Area: Social Studies
Strand: Financial Literacy (Discontinued after 2023-2024)
Date Adopted or Revised: 04/15
Status: State Board Approved