In loan agreements, collateral is an asset that the borrower has to forfeit if they default on their loan. This collateral is usually valuable and can offset the loss of the lender in the case of a defaulting borrower.
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Sep 29, 20241 min read
In loan agreements, collateral is an asset that the borrower has to forfeit if they default on their loan. This collateral is usually valuable and can offset the loss of the lender in the case of a defaulting borrower.