Collateral

"Collateral" is an intriguing term to explore, especially in the context of banking. In the realm of financial transactions, providing collateral is a customary practice to ensure the repayment of loans. This collateral includes valuable assets like real estate, vehicles, business equipment, or cash, which the lender can seize in the event of the borrower's failure to meet their repayment obligations. Recently, we had the opportunity to visit a farm where they employed organic methods to cultivate rice, which left a profound impression on us. Inspired by their approach, we yearned to adopt similar practices on our own land. Seeking financial support, we approached the bank for a loan. The bankers requested us to furnish collateral, which we promptly provided. With the loan secured, we commenced our journey of organic farming on our beloved land, embracing sustainable and eco-friendly methods.