Social Sciences, asked by adarsh9080, 1 year ago

Can u tell me about collateral ? Why di we take from persons?

Answers

Answered by BrainIyMSDhoni

Collateral is a proove which is taken by the banks before giving loans to them.We take it so that he pay the loan faster.

Answered by Anonymous

collateral is the thing like pass book or land documents which are given to the money lender while taking a loan as a guarantee . If the person does not give the money in the given time the collateral will be completely taken away by the money lender.
it acts as a guarantee.person who has lended money can sell land,vehicle etc.kept as a collateral if a person fails to repay the loan

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