Question

What do you mean by the collateral?

Answer 1

collateral is a valuable property owned by someone who wants to borrow money, that they agree will become the property of the company or person who lends the money if the debt is not paid back.

Hope this helps you...:)

Answer 2

Collateral is something which the borrower owns(like a house, land property,etc ) He keep his collateral with the lender as a security for the repayment of loan.