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Q.

Lenders ask for ____ while lending.


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Detailed Solution

The security that a borrower must pledge as collateral to get a loan. It might be a land title, factory, cattle, home, bank savings, or anything else with a value equal to or more than the loan amount. This is used as a guarantee for the loan. The lender can utilise such collateral security to secure his amount by selling it if the borrower cannot repay the loan owing to unanticipated outcomes. If the creditor cannot make payments, this gives the lender a term of security for his money and a sense of loss. The debtor will pay back the money since failing to do so will result in a significant loss of his asset.
 
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