Loan Security Type

Loan Security Type

Introduced in Version 13

The type of security that can be used as collateral for a loan, such as stocks or real estate, is known as the loan security type.

If the loan for which the applicant is applying is a secured loan, then some sort of security must be pledged against that loan throughout the loan application procedure. You can specify that kind of security in the Loan Security Type Master.

Go here: to get the list of loan security types.

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A loan security type includes information on:

• Unit Of Measurement:The loan security's UOM

• Haircut %: On that loan security, the haircut

• Loan to Value Ratio: A loan security deficit should be generated if the loan to security value ratio falls below that level.

The haircut percentage measures the discrepancy between the loan security's market value and the value assigned to it when it served as collateral for the loan.