Collateral
Property or assets pledged to a lender, which it can take if the loan is not repaid.
Collateral is the bank's safety net: land, a house, gold or deposits it can claim if you stop paying. Loans without it are riskier for the bank, which is why government guarantees and collateral-free schemes exist for small businesses.
Pledging a family home for a business loan puts the home at the business's risk. Know whether your loan needs collateral before you apply.
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See also: CGTMSE, MUDRA loan