what is the meant by collateral????
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Some things pledged as security for repayment of a loan, to be forfeited in the event of a default is known as collateral
please select my answer as brainliest frnd
please select my answer as brainliest frnd
mahashri16:
Hi
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Secondary, subordinate, or supplementary item accompanying aprimary item.
Specific asset (such as land or building) pledged as a secondary (and subordinate)security by a borrower or guarantor. Theprincipal security is usually the borrower's personal guaranty, or thecash flow of a business. Except for highly creditworthy customers (who can get loans against only their signatures) lenders always demand a collateral if theprimary security is not considered to be reliable or sufficient enough to recover the loan in case of a default. A lien is created when the collateral is registered in the public records office, giving the registered lender priority over other lenders on the same asset or property.
Specific asset (such as land or building) pledged as a secondary (and subordinate)security by a borrower or guarantor. Theprincipal security is usually the borrower's personal guaranty, or thecash flow of a business. Except for highly creditworthy customers (who can get loans against only their signatures) lenders always demand a collateral if theprimary security is not considered to be reliable or sufficient enough to recover the loan in case of a default. A lien is created when the collateral is registered in the public records office, giving the registered lender priority over other lenders on the same asset or property.
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