Question

What is collateral ? explain

Answer 1

heya!!!!!


here is your answer. ...

◆ A collateral is a thing that a borrower offers or give to the lender to secure the loan . If the borrowers stop making the promised loan then the collateral to recops it's looses ....
◆ It may be property or a other valuable thing..



hope this helps!!!!

Answer 2

Answer:

Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses. ... A lender's claim to a borrower's collateral is called a lien.