Justin signed a finance agreement for his recent purchase. what is the collateral for his loan?

According to the guarantees, the following types of loans can be distinguished:

-Loans with personal guarantee.

-Loans with real collateral.

-Home-backed loans.

Explanation:

The loans with personal guarantee the borrower recognizes the whole of his patrimony, be it the goods and the present and future rights in a general way. In the case of loans with collateral, a specific asset or right is together with the payment of the loan in the event that the borrower cannot pay the obligations contracted.

The fundamental modality is that of loans with a mortgage guarantee, in which the guarantee is a property. In this way, the loan installments are not met. The mortgage, which to be acts as a burden that is associated with the property, in such a way that, if someone obtains the property on which they have a mortgage, they could lose their property if the debt is not paid.