Social Sciences, asked by sakshikumarijain2004, 7 months ago

why do banks ask for collateral?​

Answers

Answered by arinsingh14
4

Answer:

Banks ask for collateral because if the person who borrow the money is not able to pay them back then they will get their money back by selling the things which are given in collateral.

The collateral includes house papers,bank accounts,land owned, etc.

hope it helps you.

plz mark me as brainliest.

Answered by btsarmy4646
1

Explanation:

Collateral is a guarantee to the bank so that if the borrower fails to repay the loan, the bank can sell the collateral and obtain the amount.

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