What is a security interest

A security interest is a legal right we have over your goods financed to secure repayment of your loan.

In simple terms:

You promise us that if you don’t repay the loan, we can take and sell the goods financed to recover what you owe.
The goods financed are called the secured property (or collateral).
Until the loan is fully repaid, we retain an interest in that property.

Key points about a security interest:

You keep possession and use of the secured property while you’re making payments.
You are responsible for the secured property at all times. If it is lost, damaged, or destroyed, we are not responsible—you are.
Even if something happens to the secured property beyond your control, we can still demand that you pay the full outstanding loan amount. The loss of the secured property does not cancel or reduce your debt.
We do not own the secured property unless you default.
If you default, we can enforce the security interest (for example, by repossessing and selling the secured property).
Even after the secured property is sold by us, you may still owe money if the sale doesn’t cover the full debt.

A security interest means we can use the goods you financed as backup for the loan. You keep using it, but if you don’t pay what you owe, we can take it and sell it to get our money back.