Assets owned by a loan applicant that can be pledged as security for the repayment of the loan constitute collateral.

Name: Assets owned by a loan applicant that can be pledged as security for the repayment of the loan constitute collateral.
Brand: Quizplus
Rating: 4.9 (53 reviews)

Question

Quizplus · Accepted Answer

Collateral refers to assets that a borrower offers to a lender to secure a loan. If the borrower fails to repay the loan, the lender has the right to seize the collateral to recover the loan amount.

Assets Owned by a Loan Applicant That Can Be Pledged