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[[1]]is a security or guarantees that individuals have to keep as a mortgage .

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Detailed Solution

Collateral is a security or guarantee that individuals have to keep as a mortgage.
Collateral is a security or guarantee that individuals have to keep as a mortgage when they want to take a loan from loan providers of the formal sector. That is the reason why the poor and rural population of our country prefers to take loans from informal sector loan providers, as the informal sector allows them to take loans without keeping any collateral. In addition, rural households do not have to provide any certificate of income or employment documents for borrowing money.

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