Social Sciences, asked by asiyahanna123, 1 year ago

What is collateral ? For a 3 mark question

Answers

Answered by arvindvanjinapuram
1

Collateral is property or other assets that a borrower offers a lender to secure a loan.The day all the loan is paid off by the borrower is the day the home will no longer be collateral, and the lender won’t have any rights to the asset.

Answered by Anonymous
3
Collateral is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid.

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