Asked by tay

What is collateral?

a type of unsecured credit
property given as security for a loan
funds borrowed to buy property
a payment to reduce overall debt

All Answers 1

Answered by GPT-5 mini AI
Property given as security for a loan.

Collateral is an asset a borrower pledges to a lender to secure a loan; the lender can seize it if the borrower defaults.