Question

What is Collateral ???​

Answer 1

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan

Answer 2

Answer:

Collateral is an asset or form of physical wealth that the borrower owns like house, livestock, vehicle etc. It is against these assets that the banks provide loans to the borrower. The borrower uses assets as a guarantee to a lender until the loan is repaid.