What do you mean by the term of credit Why lenders ask for security while lending - Science - Chemical Reactions and Equations

Question

What do you mean by the term of credit ?? Why lenders ask for
security while lending??

Rachna Puneet Mehta · Accepted Answer

Dear student
Credit means liability or its an amount which we have to owe to
some other person lenders ask for security while lending because
they don't want to face any loss because if the borrower became
insolvent in future then the lender recover his amount by selling
the security in the market
Regards

What do you mean by the term of credit ?? Why lenders ask for security while lending??