Social Sciences, asked by laboodamansoor, 9 months ago

1. Why do banks or lenders demand collateral
against loans?
[1]

Answers

Answered by Astro69

4

Collateral is an asset that the borrower owns (such as loans with bank, cars etc.) and uses this as a guarantee until the loan is repaid.

By collateral it is fixed that the borrower will repay the loan no matter what.

PLS MARK BRAINLIEST

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