Question

Why do lenders ask for collateral while lending?

Answer 1

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Here is your answer:❤

Lenders ask for collateral while lending because if payment of interest and repayment of the principal are not made on time, as the last resort thelenders can sell the collateral assets and recover their money.

Answer 2

Answer:

Lenders ask for collateral because they want a assurance that you do not run away with the money you have taken from the bank.

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