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6 December, 05:26

Why do banks and other financial institutions require collateral for loans?

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Answers (2)
  1. 6 December, 05:43
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    Collateral is required by banks and other financial institutions because if the loan-taker defaults on his payments. This is a safety measure that prevents people from stealing money via loans.
  2. 6 December, 05:53
    0
    To reduce the risk of lending
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