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What are the Collateral Securities which are taken by the Housing Finance Companies? 

HFCs may take some additional securities which are called collateral securities. These may be in the form of guarantee from one or two persons, assignment of life insurance policies, deposit of shares, and units or other securities. These additional securities are taken with the intention that if the amount borrowed is not paid back, and then recourse may be taken to such securities. Guarantors, when alerted, become very effective persons in prevailing upon the borrowers to fulfil their obligations.