Registering collateral against a loan

What you record

A collateral entry is linked to the specific loan (or application) it secures, so the security is never a free-floating record. Against that link you capture the asset itself and the evidence that the institution's charge over it is enforceable.

• Asset type and description — what is being pledged (for example a vehicle, land title, or equipment).
• Valuation — the assessed value that the coverage against the loan is measured on.
• Perfection status — whether the legal/administrative step confirming the lender's claim is complete, so the charge is enforceable rather than merely asserted.
• Supporting documents — the proof (title, registration, valuation report) the register entry rests on.

Why perfection is a disbursement gate

Approval decides the credit; the disbursement gates decide whether the institution is actually protected when cash leaves. For a secured product, disbursement stays blocked until the collateral is registered and perfected — its legal claim confirmed. This means a loan is never disbursed with its security still incomplete, and it separates the credit decision (the committee's job) from completing the security paperwork (operations' job) without either being able to bypass the other.

1. 1
   Create the collateral entry

   From the secured loan, add the asset, its description, and the valuation it will be assessed on.
2. 2
   Attach the evidence

   Upload the title, registration or valuation report that supports the entry.
3. 3
   Confirm perfection

   Record the asset as perfected once the legal step confirming the charge is complete — this is what turns the gate green.