Question

what is collateral?​

Answer 1

Here is your answer

Collateral is an asset that the borrower owns and uses this as a guarantee to a lender until the loan is repaid

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Answer 2

Here is your answer.

Anything like land, cattle, land which is given to someone from whom you have taken a loan is called a collateral.

It is given as a guarantee against your loan, if you fail to give the loan, the bank(from whoever you have taken the loan) can sell that collateral and get the money.

It is known as 'Girvi' in hindi.

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