Is this possible to add effect in exact location where two different objects are colliding?

I tried look for this during this afternoon and I didn't find it.

I'm new to Unity, and I know this kind of question must be a hard one to start by, but what I have in my mind is:

Suppose I have a character prefab being cut by a sword prefab, would it be possible to apply/add some kind of effect or mesh over parts of the character's mesh where collision happened?

In the end we would have something like a scar mark that I'll make fade after 3 seconds or so.

as always, Thanks in advance!