What is the difference between a non-recourse loan and a recourse loan? – Investopedia




The essential difference between a recourse and non-recourse loan has to do with which assets a lender can go after if a borrower fails to repay a loan. As a matter of principle, borrowers almost always favor non-recourse loans, while lenders almost always favor recourse loans.In both types of loans, the lender is allowed to seize any assets that were used as collateral to secure the loan.



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