Lenders ask for ____ while lending.

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Detailed Solution

Lenders ask for collateral while lending.
Collateral is the security a borrower has to offer to take a loan. It can be anything that holds a value equal to or higher than the loan amount, such as a land title, factory, livestock, house, bank deposits, etc. This is used as a guarantee for the loan. If the creditor cannot repay the loan due to unforeseen consequences, the lender can use that collateral security to secure the amount by selling it. This provides the lender with a term of security for his amount and a sense of loss if the creditor cannot repay. The creditor will repay the amount because otherwise, he will suffer a great loss of his asset.

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