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Why do lenders ask for collateral while lending? Give 3 reasons

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 https://www.meritnation.com/ask-answer/question/why-do-lenders-ask-for-co-latereal-assests-while-lending/money-and-credit/6428322

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Lenders ask for collateral because,

1. It acts as a proof that a loan has been taken from the lender

2. It secures the lender in case the borrower do not return the money with interest.

3. Te collateral helps the lender in gee=tting back his money with interest

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