Recourse Loans

What is a Recourse Loan?

What is a Recourse Loan?

If a loan is recourse, and a borrower fails to repay it, the lender can go after both the collateral as well as the borrower’s assets which were not used as collateral. In comparison, if a loan is non-recourse, a lender is not permitted to seize a borrower’s non-collateral assets.