Collateral | Definition, Types, & Uses in Finance and Law
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.
Collateral (finance) - Wikipedia
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 (also known as capital market collateralization).
Collateral - Definition and Examples - Investopedia
2024年10月4日 · 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...
Collateralization: Definition, How It Works, Examples - Investopedia
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....
Collateral | Secured Loans, Asset-Backed Debt & Mortgage …
collateral, a borrower’s pledge to a lender of something specific that is used to secure the repayment of a loan (see credit). The collateral is pledged when the loan contract is signed and serves as protection for the lender.
Collateral Definition & Example - InvestingAnswers
2019年10月1日 · What is Collateral? Collateral is an asset pledged by a borrower to a lender, usually in return for a loan. The lender has the right to seize the collateral if the borrower defaults on the obligation.
Understanding Collateral in Finance: Definition and Examples
Collateral is property or other assets pledged to a lender to help secure a loan. If someone borrows money, they can agree that their lender can take something from them if they fail to repay the debt. This is known as a secured loan.
Collateral: Definition, Examples and More - Capital One
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.
Understanding Collateral in Finance: Definition, Examples, and ...
In finance, collateral refers to an asset or property that a borrower pledges to a lender as security for a loan. This asset acts as a form of protection for the lender in case the borrower defaults on the loan.
Collateral - Definition, Collateral Value, Security & Liens
Collateral is an asset that’s been pledged as security against credit exposure. Secured loans are supported by collateral; unsecured loans are not. Taking collateral does not make an otherwise bad borrower a good one. How Does Collateral Work?