"Collateral requirements" refers to the assets or guarantees that a borrower must provide to a lender as a form of security when seeking a loan. These assets act as a backup in case the borrower is unable to repay the loan. For example, if someone wants to borrow money to buy a house, the house itself may serve as collateral. If the borrower fails to make loan payments, the lender has the right to take and sell the house to recover their money.
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