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What is Collateral? What is meant by terms of credit |
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Answer» Answer: Interest rate, collateral and documentation requirement and the mode of repayment TOGETHER comprise what is CALLED the terms of credit. They may vary depending on the nature of the lender and the borrower. Explanation: Collateral is a PROPERTY or other asset that a borrower offers as a WAY for a lender to secure the loan. If the borrower STOPS making the promised loan payments, the lender can seize the collateral to recoup its losses. |
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