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why collateral is important?

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why collateral is important?

    • Posted by Siddharth Shukla 7 years ago

    CBSE > Class 10 > Social Science
    • 1 answers

    Harsh Naik 7 years ago

    Collateral covers a multitude of sins. If you have a low credit score, you might normally be declined a loan, but with collateral your lender might be more likely to take that risk because the lender can take ownership of the asset pledged and thus reduce the risk it takes on by loaning to you.

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