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 …

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 …

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, especially within banking, traditionally refers to secured lending (also known as asset-based lending). More-complex collateralization arrangements may be used to secure trade transactions …

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

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

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.

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

5 days ago · collateral (countable and uncountable, plural collaterals) (finance) A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay.