Collateral is basically the borrower’s pledge of a specific asset to a bank or financial institution in order to secure repayment of the credit facility granted by them. If the borrower fails to make repayment for a prolonged time, then the bank or financial institution will become the owner of the collateral.

Collateral Redemption, in this context, means to repurchase the pledged property by paying off the bank or financial institution, the balance of the credit facility granted. When the credit facility has been fully paid off, the collateral will be redeemed, and returned to the customer (borrower), accordingly.

This function basically allows user to view and update the collateral status, once the full settlement transaction has been performed on the related credit facility account.