why do banks ask for collateral while giving loans?
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208
Bank ask for collateral while givingcredit to borrower because if the borrower fails to repay the loan thebank has right to use or sell thecollateral given to him by the borrower so that they can get money which theygave him as a loan.if the borrowergives the loan in time than the bank gives collateral back to
sharmaabhishek6396:
thanks
What if the q is of 1 mark?
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45
BANKS USE COLLATERAL'S AS A GURANTEE UNTILL THE LONE IS REPAID.
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