10 why do banks or lenders demand collateral against loans
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Collateral security is an asset pledged as security against a loan by the borrower to the lender of the loan. ... so whenever any bank or any lender gives loan to anyone they demand collateral so that they can feel assured about the recovery of loan amount. it acts as a protection to the lender
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Hyy Dude
if the borrower is not able to make payment of the loan on time then the lender has right to sale the collateral and recover the money. so whenever any bank or any lender gives loan to anyone they demand collateral so that they can feel assured about the recovery of loan amount. it acts as a protection to the lender.
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