Collateral Meaning In English
Collateral translation, meaning, definition, explanation and examples of relevant words and pictures - you can read here.
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Meaning
Collateral is an item of value that the lender can seize if the borrower fails to repay the loan on agreed terms. A common example is when you take out a mortgage. Generally, the bank will ask you to provide your home as a collateral.
Example
Cars are among the types of collateral that lenders generally accept only if paid in full through bank savings deposits and investment accounts. If you take out a car loan, the car is collateral for the loan.
Sentence
If Ram wanted to use his jewellery as collateral for a business loan, he would have to show the bank proof of ownership.
