loan collateral
Asset securing debt
Loan collateral is property or assets pledged to secure a loan—if the borrower defaults, the lender can seize the collateral to recover losses.
A house serves as collateral for a mortgage, a car for an auto loan.
The bank required additional loan collateral before approving the business expansion.
Collateral reduces lender risk and typically allows borrowers to secure better terms.
- real estateLand and its structures
- landEarth's solid surface
- second mortgageSubsequent lien on property
- houseResidential building
- carWheeled motor vehicle
pink slip · repossession · lien · vehicles · deed · credit scoring · title · title deeds · contract law · pawn shop · equity · property rights · bankruptcy law · inventory · mortgage agreements · risk mitigation · debt recovery · equipment
- money functionsmedium of exchange, store of value, deferred payment, purchasing power
loan collateralunsecured loan
Debt lacking pledged property
signature loan · unsecured credit · unsecured debt · personal loan · personal guarantee
loan collateralcreditworthiness
Ability to repay debts
good faith · loan balance · personal guarantee · credit score · credit line
loan, loans, loaned, loaning, loanword, collateral, collaterals, collateralize, collateralized