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 …

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

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 …

property or something valuable that you promise to give to somebody if you cannot pay back money that you borrow. We had put our house up as collateral for our bank loan. Want to learn …

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.

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.

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 …