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What is collateral? a type of unsecured credit property given as security for a loan funds borrowed to buy property a payment to reduce overall debt
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:
Property given as security for a loan
that is why there is insurance for "collateral damage. -
ogorwyne:
A collateral can be defined as: property given as security for a loan.
What is a collateral?
This is a form of security that a lender has to demand from a borrowesr before they are allowed access to a loan.
The collateral is always in the form of property. If the money borrower fails to pay the money that they borrowed, this property can be confiscicated.
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