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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.
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.
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.
1. Situated or running side by side; parallel. 2. Coinciding in tendency or effect; concomitant or accompanying. 3. Serving to support or corroborate: collateral evidence. 4. Of a secondary nature; subordinate: collateral target damage from a bombing run. 5.
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...
2 days ago · 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.
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.
COLLATERAL definition: things that you agree to give someone if you are not able to pay back money you have borrowed from…. Learn more.
Accompanying or existing in a subordinate, corroborative, or indirect relationship. Webster's New World. Similar definitions. Serving to support or corroborate. Collateral evidence. American Heritage. Of a secondary nature; subordinate. Collateral target damage from a bombing run. American Heritage. More Adjective Definitions (7) Synonyms:
Britannica Dictionary definition of COLLATERAL. formal. : related but not in a direct or close way. collateral relatives. the collateral effects of the government's policies. COLLATERAL meaning: something that you promise to give someone if you cannot pay back a loan.
