Economy, asked by teenabelelpcotqc, 1 year ago

what is Collateral ? write four terms of credit.​

Answers

Answered by harman1213
0

Answer:

property or something valuable that you agree to give to somebody if u cannot pay back that you have borrowed

Answered by brilliantboy100
2

Explanation:

  1. Collateral is an asset that the borrower owns (such as land, building, vehicles, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid.
  2. If the borrower fails to repay the loan, the lender has the right to sell the asset or the collateral to obtain the payment.
  3. Property such as land, livestock etc are some of the common examples of collateral used for borrowing.

The four terms of credit are:

  • Interest rates.
  • Callateral.
  • Documentation required.
  • Mode of repayment.

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