Why are assets used as collateral in secured loans?

[jamespeter]

The property like home, car, land, etc is considered as an asset which is liable to be as collateral when applying for secured loans. It is in the case when the person fails to repay the loan amount, the asset which is collateral will dissolve.

 

[alvina clair]

Yes in some of the loan lenders might ask for collateral depending on the type of loan like a home, car or any land because incase if a borrower cannot pay his loan then borrowers property which is kept as collateral will dissolve.
personal loans