Cryptocurrency Q&A
Why do lenders ask for collateral while lending?
Why do lenders ask for collateral while lending?
Martino
Fri Jan 24 2025
|
6
answers
1482
I want to understand why lenders often require collateral as a condition for lending money. What is the purpose of asking for assets as a guarantee?
6 answers
Nicola
Sun Jan 26 2025
Prior to granting a loan, a lender assesses the borrower's repayment capability.
Was this helpful?
187
95
Martina
Sun Jan 26 2025
This assessment is crucial as it determines the borrower's creditworthiness.
Was this helpful?
338
46
GwanghwamunGuardianAngel
Sat Jan 25 2025
To mitigate the risk involved, lenders often demand a form of security.
Was this helpful?
360
57
GeishaCharm
Sat Jan 25 2025
This security, known as collateral, serves as a guarantee for the loan.
Was this helpful?
124
51
CryptoTitan
Sat Jan 25 2025
Collateral can include assets such as property, vehicles, or investments.
Was this helpful?
86
28
Load 5 more related questions
