Register now or log in to join your professional community.
The amount of collateral is usually defined by factors like amount of loan, duration of payback, risks assessed in amount of loan taken (type of enterprenuership), etc
It is generally depends on volume of loan and banks terms and conditions. Usually businesses pledge Land or other fixed assets as a collateral as per banks' demand for loan. However banks' terms and condition vary depends on how is your relations with the bank and what is your financial health?
Thanks for invitation,
The collateral type are usually specified by the creditor but for any how the collateral value should be for minimum% of the loan value and its much better to be as much liquid.