Collateral is the word used in the context of banking, when a borrower approach a bank for loan banks wants some security in order to give money to borrower. The security may be land, building, house, machinery etc…, if a person fail to repay his or her loan banks takeover that security and sell it to realize their dues. This security which is given by an individual to a bank is called collateral.

0 comments… add one

Leave a Comment

Related pages

debt factoring examplewhat is the difference between monopoly and oligopolyproblems of barter tradehorizontal merger examplemulti segment marketing strategyweakness of socialismperfect competition tutor2uexamples of conglomerate companiesexamples of diminishing returnsdefine consignorwhat are the advantages of a traditional economydisadvantages of economic value addedordinary shares advantages and disadvantagessecuritization of accounts receivableventure capital pros and consbenefits of cashless policydefinition centrally planned economydemerits of dictatorshiphorizontal mergers examplesdifference between inferior and superior goodsurbanisation benefitsadvantages and disadvantages of socialist economyexplain the barter systemexamples of current liabilitieswhat is msf rateasset revaluation journal entryexample of congeneric mergernormal goods and inferior goods examplesfund flow analysis in financial managementcompare shopping portalsdifference between macro and micro economyfeatures of marginal costingdefine securitizedefinition of conglomerate in economicscontingent liabilities exampledeflation cycledisadvantage of capitalismscarcity in economics examplesexample of conservatism in accountingsubstitute goods economicswhat is normal goods and inferior goodslimitation of barter systemdefine job costingadvantages of cashless policycrossing a chequemerits of marginal costingdemerits of decentralisationmeaning of cash discountmarket economy strengths and weaknessesdisadvantages of socialist economyadvantages and disadvantages of centralisation and decentralisationwhat are the advantages of globalisationwhat are the advantages of barter systemcapital account journal entryexamples of accounting conventionsinformative report of demat accountunearned revenue accounting entrycapital budgeting techniques advantages and disadvantagesmixed economy of welfaremerits of management accountingdepreciation declining balanceexample of horizontal mergerindirect quotation exchange rateadvantages of an autocratic leadership styleabsolute advantage in international tradewhat is fund flow and cash flowadvantages of capitalismderived demand and autonomous demandforfeiting trade financeprepaid insurance journal entrypros of autocratic leadershipdifference between bills receivable and accounts receivableconcept of diminishing returns