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Wt is collateral

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Wt is collateral

Posted by P B Pujari 5 years ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 5 years ago

Collateral (Security) is an asset that the borrower owns (such as land, building, vehicle, livestocks, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment.

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