Loans can be secured with collateral (if the feature is enabled in the configuration). The ability and obligation to use collateral depends on the credit product settings.
If the feature is enabled, customers will be able to enter details of the collateral when applying for the loan, and a back-office user with the “Collateral management” permission can manage, evaluate, and re-evaluate collateral assets in the dedicated Collateral workplace (see Lender Collects and Maintains Information about the Collateral ) article.
Max LTV
For each credit product, you can define the Loan to Value Ratio (LTV) - a loan cannot be approved if the ration is above the limit.