During a loan application process at a commercial bank, the loan officer requested that the applicant provide a landed property to guarantee repayment in the event of default. Which specialized banking term refers to an asset pledged by a borrower as security for a loan?
- collateralCevap
- Bdividend
- Cindemnity
- Dpremium
Cevap
collateral
The word 'collateral' is the precise term used in banking and commercial transactions to denote an asset or property that a borrower commits to a lender to secure a loan.
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Anahtar Kavram
Occupational and Specialized Registers (Banking and Finance)