what is collateral?
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Collateral is the asset that the borrower owns and uses this as a guarantee- to the lender until the loan is repaid.
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Collateral is an asset that a lender accepts as a security for extending a loan. If the borrower fails to pay the debt, then the lender has the right to seize the collateral and may even sell it to obtain the money that he/she has lended to the borrower.
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