LIST SOME ITEMS THAT ARE KEPT AS COLLATERAL SECURITY AGAINST LOAN WHAT HAPPENS IF A BORROWER FAILS TO REPAY - Social Science - Money and Credit

Question

LIST SOME ITEMS THAT ARE KEPT AS COLLATERAL SECURITY AGAINST
LOAN WHAT HAPPENS IF A BORROWER FAILS TO REPAY THE LOAN?

Ayan Shukla · Accepted Answer

Gold, house, car or any kind of
durable and fixed asset which is valuable enough to allow the
borrower to borrow money against it, can be kept as
collateral

If borrower fails to repay the
loan, the bank or the lender has the right to sell the asset kept
as collateral to retrieve the money not paid by the
borrower

LIST SOME ITEMS THAT ARE KEPT AS COLLATERAL SECURITY AGAINST LOAN. WHAT HAPPENS IF A BORROWER FAILS TO REPAY THE LOAN?