Economy, asked by nravee69, 1 month ago

why do lenders ask for collateral while lending​

Answers

Answered by vasimvj27
17

Answer:

Lenders ask for collateral as security against loans. If the borrower fails to repay the loan, the lender has the right to sell the asset-or collateral to recover the payment. ... It is for this reason that lenders ask for collateral while lending.

Answered by xyzdewangan8
2

Lenders ask for collateral as security against loans. If the borrower fails to repay the loan, the lender has the right to sell the asset-or collateral to recover the payment.

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