Answer:
Collateral is an asset that the borrower owns ( such as land ,building, vehicle, livestock, deposit with banks) and uses this as a guarntee to a lender until the loan is repaid.
[tex] \bf \green{ \huge{collateral = > }} [/tex]
It is an asset, owned by a person who takes loan.
Lender can sell these assets if the borrower fails to repay the loan.
[tex] \underline \blue{for \: eg - - }[/tex]
Vehicles,building, land, livestock, etc.
Plz thanks
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Answer:
Collateral is an asset that the borrower owns ( such as land ,building, vehicle, livestock, deposit with banks) and uses this as a guarntee to a lender until the loan is repaid.
Verified answer
Answer:
[tex] \bf \green{ \huge{collateral = > }} [/tex]
It is an asset, owned by a person who takes loan.
Lender can sell these assets if the borrower fails to repay the loan.
[tex] \underline \blue{for \: eg - - }[/tex]
Vehicles,building, land, livestock, etc.
Plz thanks