> For the complete documentation index, see [llms.txt](https://docs.townsq.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.townsq.xyz/user-guide/borrow/adding-collateral.md).
# Adding Collateral
1. On the top right corner of the borrow section, click on **Create a new loan**
2. Input the name of your loan, choose the type of loan you want, click on Continue
3. You can choose Create loan and add collateral later or you select Create Loan. Selecting an asset to add to the loan while creating a loan bundles the two actions in a single transaction.
4. Before borrowing an asset you need collateral. Click **Add Collateral** to collaterize an asset
5. Input the amount you want to collaterize and sign with your connected wallet