Economy, asked by udaykataria123, 10 months ago

why do lenders ask for Collateral while lending give any three reason

Answers

Answered by yogichaudhary

12

Answer:

Lenders ask for collateral because : (i) It acts as a proof that a loan has been taken from the lender. (ii) It secures the lender in case the borrower do not return the money with interest. (iii) The collateral helps the lender in getting back his money with interest.

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