pledged assets

**Pledged Assets**

Pledged assets refer to property or assets that a borrower offers as collateral to secure a loan or fulfill an obligation. These assets are “pledged” to the lender as a guarantee that the borrower will repay the debt. If the borrower defaults, the lender has the right to seize or sell the pledged assets to recover the outstanding amount. Common examples of pledged assets include real estate, vehicles, stocks, and other valuable property. Understanding pledged assets is essential for both lenders and borrowers in managing risk and ensuring loan security.