Social Sciences, asked by krishnasaketha800, 11 months ago

What is collateral?​

Answers

Answered by harshita2520
1

Explanation:

The term collateral refers to an asset that a lender accepts as security for a loan. ... The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.

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Answered by mpayal032
0

Answer:

it is the borrower pledge of specific to lender to secure repayment of loan

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