which one of the following is the appropriate meaning of collateral
Answers
Answered by
0
Explanation:
(ii) Collateral- It is an asset that the borrower owns such as land, building, vehicle, live stocks deposits with the banks and uses this as a guarantee to a lender until the loan is repaid. ... Self help groups have organised rural poor more so women in collecting their money and in extending loans to its members.
Pls follow me
Answered by
2
The term collateral refers to an asset that a lender accepts as security for a loan. The collateral acts as a form of protection for the lender. That is, if the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recoup some or all of its losses.
HOPE THIS HELPS YOU..
Similar questions