What is Collateral Security?
An applicant can pledge various properties as collateral security
Collateral security is any asset that is offered against the said credit facility for a loan.
It is just a borrowing request of the borrower to the lender. An applicant can pledge various properties like, a house, land, car, fixed deposit, jewelry, etc. as collateral security.
It can be sold off if the loan is not repaid or the lender can seize these assets in lieu of sum owed and claim them.