The lender then has the option of taking possession of the collateral if the repayment terms are not met. (credible.com)
With a secured loan or line of credit, the lender can take possession of your collateral if you don't repay the loan as you have agreed. (santanderbank.com)
The reason for this is the existence of the aforementioned collateral, because banks can simply keep possession of collateral if a borrower can't make payments. (secureloanconsolidation.com)