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 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 definition: 1. valuable property owned by someone who wants to borrow money, that they agree will become the…. Learn more.

Definition of collateral noun from the Oxford Advanced Learner's Dictionary. property or something valuable that you promise to give to somebody if you cannot pay back money that you borrow. We …

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

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

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.

Collateral definition: Situated or running side by side; parallel.

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.