What happens if the value of my collateral decreases after the loan is approved?

If the value of your collateral decreases after the loan is approved, it can have consequences for both you and the lender. If the value of your collateral falls below the loan amount, the lender may ask you to provide additional collateral or to pay down the loan balance to maintain the required loantovalue ratio. If you are unable to provide additional collateral or pay down the loan balance, the lender may consider your loan to be in default, which could lead to the lender seizing your collateral and selling it to recover their losses. Therefore, it's important to carefully consider the value of your collateral and its potential for depreciation before taking out a loan with collateral.