As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house …

May 16, 2025 · What Is Collateral? Collateral is a valuable asset that a borrower pledges as security for a loan, serving thus as a guarantee for the lender.

COLLATERAL definition: property or other assets pledged by a borrower as security for the repayment of a loan. See examples of collateral used in a sentence.

collateral adjective (FINANCIAL) [ before noun ] relating to financial collateral (= valuable property owned by someone who wants to borrow money, that they agree will become the property of the …

Definition of collateral noun in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.

Define collateral. collateral synonyms, collateral pronunciation, collateral translation, English dictionary definition of collateral. adj. 1. Situated or running side by side; parallel.

Collateral is money or property which is used as a guarantee that someone will repay a loan.

Collateral is an asset of value that a borrower pledges as security to reduce a lender’s risk when they offer a loan. If the borrower defaults on the loan, the lender is allowed to repossess the collateral. …

Collateral is something, a possession, that the borrower pledges as security when taking out a new loan. If that person defaults, i.e., fails to pay back the money, the lender can seize that item.

May 3, 2023 · Collateral is an asset—like a car or a home—that can help borrowers qualify for a loan by lowering the risk to a lender. Secured loans typically require collateral; unsecured loans usually don’t.