Collateral Savings

Secure your loan with a savings deposit while earning interest. If a client defaults, KEF can access the pledged amount to recover losses.

This product refers to using clients’ cash assets in a savings account, as security for a loan but can also accrue interest. If the client borrows money and can’t repay it, KEFM can take possession of the pledged asset to recover the loan and losses. 

• Pledging Assets:
  Collateral savings involve pledging an asset (like cash) to KEFM as a guarantee that you will repay a loan. 
• Security for the Lender:
  The KEFM uses the collateral to protect its funds just in case you default on the loan. 
  Seizure upon Default
  If you fail to repay the loan, KEFM has the right to seize the collateral and sell it to recover the outstanding amount. 
• Reduced Risk:
  Loans backed by collateral are generally considered less risky for KEFM, which can lead to lower interest rates.