4. What is a key feature of a secured loan? 1. The borrower can change the interest rate at any time 2. The lender can increase the loan amount without notice 3. The borrower can choose to pay back less than the borrowed amount 4. The lender can take possession of the collateral if the borrower dotaulls

The correct answer is **4. The lender can take possession of the collateral if the borrower defaults.**<br /><br />A secured loan is backed by collateral, which is an asset (like a car or house) that the lender can seize and sell if the borrower fails to repay the loan as agreed. This collateral minimizes the lender's risk and is a key distinguishing feature of secured loans. The other options are incorrect and do not reflect the nature of secured loans.<br />