Pledged collateral refers to assets that are used to secure a loan. The borrower pledges assets or property to the lender to guarantee or secure the loan.
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Interesting Questions
Lenders will typically assess the market value of your asset, maybe even bringing in an expert. It’s like a reality check on how much your stuff is really worth.
You can use things like vehicles, real estate, or even stocks. Basically, if it has value and you own it, it could be on the table.