Question

Which is generally more valuable as security for a loan – real or personal property? Why?

Which is generally more valuable as security for a loan – real or personal property? Why?

Homework Answers

Answer #1

While issuance of the loan, personal property are not that important whereas real property are more important because personal property will be including all the movable assets like cash and other fixed assets except land and building.

Real asset would be including land and buildings and that would be meaning that the loan should be based upon that because this should be kept as the collateral mostly and the bank should be secured that their money is safe because of the value stored in the land and the building.

So, Real securities like land and building are more important while issuance of a loan and seeking a collateral.

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