Which among the following terms is used for property or other items that are pledged to pay off a loan if payments are not made according to the contract?

Which among the following terms is used for property or other items that are pledged to pay off a loan if payments are not made according to the contract?
[A]Annuity
[B]Collateral
[C]Commodate
[D]Lease

Collateral
Collateral is an asset pledged to a lender to guarantee repayment. Collateral could include savings, bonds, insurance policies, jewellery, property or other items that are pledged to pay off a loan if payments are not made according to the contract. Collateral is not required for unsecured credit card accounts.

Categories: /

Advertisement

Comments