Collateral: meaning, pronunciation and examples
Collateral noun. Property promised to a lender as security, which is lost if the loan isn’t repaid.
How to say it
kuh-LAT-uh-rul/kəˈlat(ə)r(ə)l/
4 syllables, stressed on the second (LAT).
Collateral in a sentence
They put up the house as collateral for the business loan.
With no collateral and a patchy credit record, she was turned down by every bank.
Similar and opposite
Similar:
- security
- guarantee
- surety
- pledge
Where collateral comes from
From Medieval Latin collateralis, side by side; the money sense comes from security given alongside a main promise.
Test yourself
Which word fills the gap?
With no _____ and a patchy credit record, she was turned down by every bank.
- collateral
- perquisite
- usufruct
Show the answer
collateral: With no collateral and a patchy credit record, she was turned down by every bank.