Question

what is collateral,explain it ??​

Answer 1

Answer:

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Collateral:-

➡ It is an asset that the borrower owns and uses this as a gurantee to a lander until the loan is repaid... ✨

Answer 2

Collateral is an asset pledged by a borrower to a lender, usually in return for a loan. The lender has the right to seize the collateral if the borrower defaults on the obligation. ... This collateral might consist of financial instruments, houses, cash, or even objects such as art, jewelry, or other items.