Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Recourse Loan

A legal agreement by which the lender has the legal right to collect pledged collateral in the event that the borrower is unable to satisfy debt obligations. Recourse lending provides protection to lenders, as they are assured to have some sort of repayment - either cash or liquid assets. Traditionally, companies that issue recourse debt have a lower cost of capital, as there is less underlying risk in lending to that firm.
 

Source: NCREIF | Date: 09 September 2025 | ID: D1401 | Version: 1