Collateral Definition & Meaning - Merriam-Webster
网页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 is collateral that goes to the lender if the sum isn't paid.
Collateral - Definition and Examples - Investopedia
网页2024年10月4日 · Collateral is a valuable asset that a borrower pledges as security for a loan. For example, when a homebuyer gets a mortgage, the home serves as the collateral for the loan. For a car loan, the...
Collateral | Definition, Types, & Uses in Finance and Law
网页2021年6月8日 · Learn about collateral, a key concept in finance and law. Understand how collateral is used in financial markets, legal proceedings, and personal finance.
What Is Collateral? – Forbes Advisor
网页2021年3月26日 · Collateral is a thing of value that a borrower can pledge to a lender to get a loan or line of credit, including real estate, vehicles, cash and investments.
COLLATERAL | definition in the Cambridge English Dictionary
网页valuable property owned by someone who wants to borrow money, which the person agrees will become the property of the lender (= person or business that lends money) if the debt …
COLLATERAL Definition & Meaning | Dictionary.com
网页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.
What is collateral on a loan — and when do you need it? - CNBC
网页2024年5月20日 · Financial institutions and other lenders usually consider loans secured with collateral less risky, and certain types of loans (such as mortgages) require collateral by default. Sometimes, you...
What is collateral? Definition and examples - Market Business …
网页Definition and examples. 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. Image created by Market Business News.
Collateral: Definition, Examples and More | Capital One
网页2023年5月3日 · 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.
Collateralization: Definition, How It Works, Examples - Investopedia
网页2024年9月17日 · Collateralization provides a lender with security against default on a loan. Because it greatly reduces the lender's risk, the interest rates on collateralized loans are substantially lower ...