What is the benefit of a collateral loan (i.e. "CD loan")?

[Bienes Raices]

These are the loans where a bank lends you (for example) $10,000, but you must establish a CD or savings account with that bank in the amount of $10,000 as collateral and you can't touch the account until the loan is paid back. Is this just for people with bad (or no) credit who are trying to establish credit? I can't see how this type of loan benefits the borrower.

[Jason S.]

Many banks will not report to credit for this type of loan. There are uses for it, such as mitigated CD term break penalties...