why do lenders ask for collateral while lending?
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why do lenders ask for collateral while lending?
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Answer:
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Explanation:
Lenders ask for collateral as security against loans. If the borrower fails to repay the loan, the lender has the right to sell the asset-or collateral to recover the payment. Collateral assets (such as land, vehicle, etc.) ... It is for this reason that lenders ask for collateral while lending.
Lenders ask for collateral as security against loans. If the borrower fails to repay the loan, the lender has the right to sell the asset-or collateral to recover the payment. Collateral assets (such as land, vehicle, etc.) ... It is for this reason that lenders ask for collateral while lending