Recourse is the Lender's legal right to collect the Borrower's pledge collateral if the borrower does not pay their debt obligation
Recourse Loan: It allows lender to pursue additional assets when a borrower defaults on a loan if the debt's balance surpasses the collateral's value.
Non-Recourse loan: It permits the lender to seize only the collateral specified in the loan agreement, even if its value does not cover the entire debt.
