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- DictionaryCol·lat·er·al/kəˈladərəl/
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 descent in a family as another but by 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 George Washington"
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.
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 is not paid back: She put up her house as collateral for the loan.
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 is money or property that is used as a guarantee that someone will repay a loan. Many people use personal assets as collateral for small business loans. There is collateral available to be sold if the loans default.
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...
It's what you promise to give someone if you don't repay a loan, like the car you put up as collateral when you take a loan out from the bank. As an adjective, collateral can refer to something indirect or off to the side, like collateral damage.
Definition of collateral noun in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.
