Loan Security Type

Loan Security Type defines the type of security that can be pledged against a loan like Stocks, land, etc.

During a loan process, if the loan for which the applicant is applying is a secured loan then some kind of security needs to be pledged against that loan. In Loan Security Type master you can define that type of security.

To access the Loan Security Type list, go to:

Home > Loan Management > Loan Security > Loan Security Type

A Loan Security Type contains details about:

• Unit Of Measurement: The UOM of the loan security
• Haircut %: The haircut on that loan security
• Loan to Value Ratio: The Loan To Security Value Ratio, below which loan security shortfall should be created

Haircut percentage is the percentage difference between market value of the Loan Security and the value ascribed to that asset when used as collateral for that loan.