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  2. www.investopedia.com › terms › cCollateral - Definition and Examples - Investopedia

    Feb 23, 2024 · 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...

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  3. www.cnbc.com › select › what-is-collateralWhat is collateral on a loan — and when do you need it? - CNBC

    May 20, 2024 · Collateral on a loan backs up your promise to repay the lender with a physical asset. Even if you default on your loan or credit card, the lender can recoup the loss by seizing the asset. This type...

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  5. www.airtel.in › blog › personal-loanWhat Is Collateral on a Loan and When Do You Need It? - Airtel

    Jun 24, 2024 · A collateral is an asset or something valuable that a borrower offers to a lender to secure a loan. If the borrower cannot repay the loan, the lender has the right to take the collateral and sell it to recover the money. Common types of collateral include houses, cars, savings account, and other valuable items. Why is Collateral Important?

  6. www.forbes.com › personal-loans › what-is-collateralWhat Is Collateral? – Forbes Advisor

    Mar 26, 2021 · Collateral is a thing of value that a borrower can pledge to a lender to get a loan or line of credit; common examples of collateral include real estate, vehicles, cash and investments.

  7. www.idfcfirstbank.com › what-is-a-collateral-loanWhat is Collateral Loans - Meaning & Benefits - IDFC FIRST Bank

    Collateral is an asset that protects a lender from possible defaulting on the borrower's part, thus reducing their risk. Lenders can sell the collateral to make up for any loss. What is a collateral loan? Banks and non-banking financial companies (NBFCs) generally disburse two types of loans: secured loans and unsecured loans.

  8. fastercapital.com › content › What-You-Need-To-KnowWhat You Need To Know About collateral When Applying For A ...

    Jun 5, 2024 · Collateral is an asset that a borrower pledges to a lender as security for a loan. In the event that the borrower defaults on their loan payments, the lender can seize the collateral in order to recoup their losses.

  9. www.thebalancemoney.com › what-is-collateral-5089892What Is Collateral? - The Balance

    Jan 31, 2022 · Definition. Collateral represents something you own, of value, that you offer to a lender as security in return for a loan. If you fail to pay the loan, the lender can legally claim your collateral as part of its effort to recover at least some of the amount you borrowed. Key Takeaways.