Ask Question
9 January, 22:03

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

+2
Answers (2)
  1. 10 January, 00:08
    0
    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. 10 January, 00:46
    0
    To reduce the risk of lending
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Why do banks and other financial institutions require collateral for loans? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers