(i) Collateral is an asset that the borrower owns (such as land, building, vehicle, livestock, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid.
(ii) Another term of condition is interest rate. It is extra amount on principal amount which is to be paid by borrower. Interest rates in formal and informal sectors are different.
(iii) Mode of repayment is another term of condition. It means how the borrower has to repay. It could be in the form of monthly, quarterly, or how mutually decided among borrower and lender.