Q7 of 141 Page 459

What do you mean by collateral in case of a loan?

A person who is in need of money borrows money from banks or other financial institutions.


1. The money lent to the borrower is called the loan.


2. The borrower has to furnish details of security to take a loan.


3. The security is in the form of assets that the borrower owns. It may be in the form of land, building or any other fixed assets.


4. These assets are used as security till the loan is repaid.


5. These assets of the borrower which is used as security to a loan are termed as Collateral.


In case, if the borrower fails to repay the loan, the lender can sell this collateral or the assets of the borrower and take his money.


More from this chapter

All 141 →
5

State two outcomes of democracy.

 6

What does foundational challenge include?

 8

'The first clear expression of nationalism came with the French Revolution in 1789'. In view of the statement, identify the features of a nation in post-revolutionary France.

OR


Examine the steps taken by the French to suppress the movement inspired by Huynh Phu So in Vietnam.

 9

How did print bring the reading public and hearing public closer?

OR


How did the novels try to create a sense of pan-Indian belonging? Explain.