1 point 4. What do you mean bycollateral- *Oit is the total sum of moneywith a personO it is the things kept in lockerit is the security to a lenderuntill the loan is repaid

1 point 4. What do you mean bycollateral- *Oit is the total sum of m

1.	1 point 4. What do you mean bycollateral- *Oit is the total sum of moneywith a personO it is the things kept in lockerit is the security to a lenderuntill the loan is repaid
Answer» The term collateral refers to an asset that a lender accepts as SECURITY for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan. The collateral acts as a form of protection for the lender.Collateral is an asset or something you own that you offer to a lender as compensation in the EVENT that you default on your loan payments. If this happens, the lender has the legal right to seize whatever was offered as collateral and resell it to make up for the money they lost.Interest rate. The borrower has to pay a SUM of money as interest along with the principal amount.Collateral. It is an asset that the borrower owns and uses this as a GUARANTEE – to the lender UNTILL the loan is repaid.Documentation. ...Mode of repayment.