Both recourse and non-recourse loans allow lenders to seize the assets that are given as collateral at the time of getting the loan in case the borrower defaults on the repayment. With a recourse loan, lenders can go after a borrowers other assets if they dont get back all of their money. But with a non-recourse loan, a lender can collect from the collateral but cannot go after other assets of the borrower. So, non-recourse loans have higher rates, stricter terms and other stringent conditions.