Search results
- Dictionarycollateral/kəˈlat(ə)rəl/
noun
- 1. something pledged as security for repayment of a loan, to be forfeited in the event of a default: "she put her house up as collateral for the bank loan"
- 2. a person having the same ancestor as another but through a different line.
adjective
- 1. additional but subordinate; secondary: "the collateral meanings of a word"
- 2. descended from the same stock but by a different line: "a collateral descendant of Robert Burns"
Powered by Oxford Dictionaries
Feb 23, 2024 · Collateral is an item of value pledged to secure a loan. Collateral reduces the risk for lenders. If a borrower defaults on the loan, the lender can seize the collateral and sell...
The meaning of COLLATERAL is property (such as securities) pledged by a borrower to protect the interests of the lender. How to use collateral in a sentence. Did you know?
Jan 29, 2024 · Collateral is an item of value that borrowers can pledge to lenders to obtain a loan or a line of credit. Oftentimes, lenders require borrowers to offer collateral as part of the lending agreement, in which the loan’s approval is entirely dependent on the collateral – i.e. the lenders are attempting to protect their downside protection and de-risk.
COLLATERAL definition: 1. valuable property owned by someone who wants to borrow money, that they agree will become the…. Learn more.
Collateral is property or other assets pledged to a lender to help secure a loan. If someone borrows money, they can agree that their lender can take something from them if they fail to repay the debt. This is known as a secured loan.
Collateral refers to an asset that a borrower offers to a lender as security for a loan. If the borrower defaults on the loan, the lender has the right to seize the collateral to recover the owed amount. Common types of collateral include real estate, vehicles, inventory, and accounts receivable.
In lending, collateral is typically defined as an asset that a borrower uses to secure a loan. Collateral can take the form of a physical asset, such as a car or home. Or it could be a financial asset, like investments or cash. Lenders may require collateral for certain loans to minimize their risk.
Oct 1, 2019 · Collateral is an asset pledged by a borrower to a lender, usually in return for a loan. The lender has the right to seize the collateral if the borrower defaults on the obligation. How Does Collateral Work? Let's assume you would like to borrow $100,000 to start a business.
Mar 26, 2021 · Collateral is a thing of value that a borrower can pledge to a lender to get a loan or line of credit; common examples of collateral include real estate,...
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.
