Question

why does the lender insist co lateral security?( class 10 ch money and cridet Question) ​

Answer 1

Answer:

The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt. Collateral is important because lenders want you to have some input in the game. They're taking a risk so they want you to risk something too.

Explanation:

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Answer 2

Answer:

The lenders ask for a collateral before lending because: It is an asset that the borrower owns and uses this as a guarantee to the lender – until the loan is repaid. Collateral with the lender acts as a proof that the borrower will return the money.

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