loan security

USAGE SUMMARY

"loan security" is a correct and commonly used phrase in written English.
It refers to any type of collateral or asset used to secure a loan, ensuring that the lender will be paid back in case the borrower defaults. You can use "loan security" when talking about the terms and conditions of a loan, such as the interest rate, repayment schedule, and any collateral required. Here is an example sentence: "The bank approved the loan application, but the borrower had to provide additional loan security in the form of their car title."

✓ Grammatically correct

Academia

News & Media

Human-verified examples from authoritative sources

Exact Expressions

8 human-written examples

§ 201.51 Proceeding against the loan security.

Cornell University

SAID TO BE AMPLY SOLVENT Concern's Inability to Give Loan Security Laid to Restrictive Clauses of Its Charter.

The New York Times

L. 110 246, § 6107, amended section generally, substituting provisions relating to expansion of access, loan security, emergency communications equipment providers, and authorization of appropriations, consisting of subsecs.

Cornell University

Worth around £50m, the homes were used as loan security, allowing the landlord to borrow £200m to buy and transform derelict homes into good quality temporary accommodation at market rents for homeless people.

The Guardian

The Banking segment consists of deposit, loan, security investment, and exchange businesses.

Forbes

The Rangers Supporters Trust (RST) has secured more than £500,000 funding for their legal fight to prevent Ibrox Stadium being used for loan security.

BBC

Human-verified similar examples from authoritative sources

Similar Expressions

52 human-written examples

For example, funds that invest in bank loan securities have been a bond marketer's dream.

The New York Times

Last year, investors scooped up $11.7 billion in auto loan securities, up from $2.17 billion in 2008.

The New York Times

Student loan securities are the hardest to sell: their discounts are 25percentt or more.

The New York Times

When stock markets fell, the value of the loan securities pledged — usually shares in the business — fell dramatically, leading to margin calls and business failures.

The New York Times

The Banking division provides banking services, including deposit, loan, securities trading and investment, domestic and foreign exchange, corporate bonds underwriting and registration services.

Forbes

Expert writing Tips

Best practice

In legal documents, use "loan security" in conjunction with precise descriptions of the collateral, including serial numbers, locations, and appraised values.

Common error

Avoid using "loan security" when you actually mean "loan insurance". "Loan security" refers to collateral, while loan insurance protects against the borrower's inability to repay due to unforeseen circumstances.

Linguistic Context

The phrase "loan security" functions primarily as a noun phrase, identifying the collateral or assets used to secure a loan. As Ludwig AI explains, it's a standard term in financial and legal contexts.

Expression frequency: Uncommon

Frequent in

News & Media

38%

Academia

31%

Formal & Business

11%

Less common in

Science

10%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, the phrase "loan security" is a grammatically sound noun phrase used to denote the collateral pledged to secure a loan. As Ludwig AI confirms, this term is correct and frequently appears in financial and legal settings. Although relatively uncommon in general usage, "loan security" is frequently seen in news, academic and business contexts. When writing about loans, be sure to distinguish between "loan security", which involves collateral, and "loan insurance", which covers default risks. Using similar terms like "loan collateral" or "security for loan" can provide alternative phrasing while maintaining clarity.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Loan collateral

Focuses specifically on the assets pledged to secure the loan.

Security for loan

Inverts the original phrase, maintaining the core meaning.

Loan guarantee

Highlights the assurance provided to the lender.

Credit security

Broader term that covers security for any form of credit, including loans.

Collateral for loan

Similar to loan collateral but emphasizes that it serves the loan.

Secured loan

Describes the loan itself as being protected by security.

Asset pledged for loan

Highlights the action of pledging assets as security.

Loan backing

Emphasizes the support or assurance behind the loan.

Security interest in loan

More formal and legalistic term describing the lender's right to the security.

Guarantee for loan

Focuses on the act of providing a guarantee to secure the loan.

FAQs

What constitutes "loan security"?

Loan security typically includes assets like real estate, vehicles, or other valuable items pledged as collateral to guarantee repayment of a loan. The specific assets depend on the agreement between the lender and borrower.

How does "loan security" protect the lender?

Loan security protects the lender by providing recourse in case the borrower defaults. The lender can seize and sell the security to recover the outstanding loan amount.

What happens to the "loan security" if the borrower repays the loan?

Once the loan is fully repaid, the lender releases their claim on the "loan security", and the borrower regains full ownership and control of the asset.

What are some alternatives to "loan security"?

Depending on the context, alternatives to "loan security" can include a "loan guarantee", where a third party promises to repay the loan if the borrower defaults, or "loan insurance", which protects the lender against losses due to borrower default.