Question

What Do you understand by Collateral?

Class = 10th
Subject = Eco.

Answer 1

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What do you understand by collateral ?

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Collateral is as asset that the borrower owns (such as land, building, vehicle , livestocks, deposits with banks ) and uses this as a guarantee to a lender until the loan is repaid.

If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain the payment.

Answer 2

HOLA MATE!!! ❤❤

HERE IS YOUR ANSWER...--

COLLATERAL--

Collateral is A property Or other asset that a borrower offers as was for a lender to secure the loan. If the borrower stops making the promised from payments the lender can seize the collateral to recup it's losses.

hope this helps.......❤❤❤