What do you mean by a colleteral in case of a loan
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Collateral is something that helps secure a loan. When you borrow money, you agree (somewhere in the fine print) that your lender can take something and sell it to get their money back if you fail to repay the loan. Collateral makes it possible to get large loans, and it improves your chances of getting approved if you’re having a hard time getting a loan.
When you pledge collateral, the lender takes less risk, which means you're more likely to get a good rate.
When you pledge collateral, the lender takes less risk, which means you're more likely to get a good rate.
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it is the accurate definition of collateral
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