collateral (B2)

noun

Pronunciation: /kəˈlætərəl/

Definition

Property or assets pledged by a borrower to a lender to secure a loan, which can be taken by the lender if the borrower fails to repay.

Examples

• He had to offer his house as collateral for the mortgage.

• The company's equipment served as collateral for the business loan.

• Without sufficient collateral, the bank refused to approve the loan.

How to Use collateral

collateral for (prepositional phrase)

Used to specify what the collateral is securing. — "She used her investment portfolio as collateral for the business loan."

collateral damage (collocation)

Unintended harm or destruction caused by military action to non-military targets. — "The report detailed the extensive collateral damage caused by the bombing raid."

Synonyms of collateral

Words with a similar meaning to collateral:

• security
• guarantee
• pledge
• surety

Antonyms of collateral

Words with the opposite meaning to collateral:

• unsecured
• personal

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