Social Sciences, asked by allenjoshua03052005, 6 months ago

Why do banks ask for collateral while giving credit to the borrower?

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Answered by Anonymous

Bank ask for collateral while giving credit to borrower because if the borrower fails to repay the loan the bank has right to use or sell the collateral given to him by the borrower so that they can get money which they gave him as a loan.

Answered by shaikhmahewish1127

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Why do banks ask for collateral while giving credit to the borrower?​

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Why do banks ask for collateral while giving credit to the borrower?