Question

now imagination interview with Michael stone​

Answer 1

Explanation:

Collateral is an asset owned by the borrower like land, building etc, and is used as a guarantee to the lender till the loan is repaid. Lenders ask for collateral because:

1. It serves as a security against the loan borrowed.

2. In case of failure of repayment of the loan, the lender can take the collateral as compensation.