An Indiana secured promissory note is a loan agreement that requires the borrower to provide collateral as a condition for financing. This reduces the lender’s risk as the borrower guarantees compensation by offering an asset as collateral. It is often required for individuals with poor credit, preexisting debt, or fluctuating income who may struggle to obtain an unsecured loan.
Failure to adhere to the loan agreement may result in the lender selling the collateral to cover the financial deficit. This note adds structure to a deal involving money loaned between two parties, with the lender receiving regular payments from the borrower to repay the loan balance and interest owed.
