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Explanation: Secured loans are debt instruments taken out by a company that are backed by collateral, such as assets or property owned by the company. These loans provide lenders with a level of security in the event of default, as the collateral can be seized and sold to recover the outstanding debt. Secured loans typically carry lower interest rates compared to unsecured loans due to the reduced risk for lenders.
Example: Coal India has secured loans of 3,946.39 crore rupees in FY23, indicating the total amount of debt secured by collateral held by the company. This suggests that Coal India has borrowed funds while providing assets or property as security to the lenders. Secured loans are commonly used by companies to finance capital expenditures, expansion projects, or working capital requirements, leveraging their assets to access financing at favorable terms.
You can view the Secured Loans for any company on Radar under Non-Current Liabilities in the Cash Flow section.