Collateral is an asset owned by the borrower like land, building etc, and is used as a guarantee to the lender till the loan is repaid. Lenders ask for collateral because: ... In case of failure of repayment of the loan, the lender can take the collateral as compensation
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Answer:
Collateral is an asset owned by the borrower like land, building etc, and is used as a guarantee to the lender till the loan is repaid. Lenders ask for collateral because: ... In case of failure of repayment of the loan, the lender can take the collateral as compensation
Explanation:
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