Collateral refers to an asset pledged by the borrower to secure a loan. If the borrower defaults on the loan, the lender can seize the collateral to recover their losses. Common types of collateral include property, cars, and financial assets.
Collateral refers to an asset pledged by the borrower to secure a loan. If the borrower defaults on the loan, the lender can seize the collateral to recover their losses. Common types of collateral include property, cars, and financial assets.