1 point
4. What do you mean by
collateral- *
O
it is the total sum of money
with a person
O it is the things kept in locker
it is the security to a lender
untill the loan is repaid
Answers
Answer:
The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender.Collateral is an asset or something you own that you offer to a lender as compensation in the event that you default on your loan payments. If this happens, the lender has the legal right to seize whatever was offered as collateral and resell it to make up for the money they lost.Interest rate. The borrower has to pay a sum of money as interest along with the principal amount.
Collateral. It is an asset that the borrower owns and uses this as a guarantee – to the lender untill the loan is repaid.
Documentation. ...
Mode of repayment.
1:Collateral is a type of a security/guarantee taken by the banks from its customers.
2:Usually collateral are taken by the banks for lending money to its customers.
3:Collateral can be in the form of fixed deposit documents, property, documents, etc.