Asset

An asset refers to any valuable resource owned by a borrower that can be used to secure a loan. Assets can be tangible, like real estate, vehicles, or equipment, or intangible, like stocks and intellectual property. 

In loan management, accurately assessing and monitoring assets is essential for determining loan eligibility, setting collateral requirements, and minimizing risk. 

Proper asset management ensures that loans are backed by sufficient collateral, safeguarding both lenders and borrowers throughout the loan lifecycle.