collateral

[ kuh-lat-er-uhl ]

/ kəˈlæt ər əl /

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See synonyms for collateral on Thesaurus.com

noun

Finance. property or other assets pledged by a borrower as security for the repayment of a loan: He gave the bank stocks and bonds as collateral for the money he borrowed.

Anatomy.

a subordinate or accessory part.
a side branch, as of a blood vessel or nerve.
collateral circulation.

a relative descended from the same stock, but in a different line.

adjective

accompanying; auxiliary: He received a scholarship and collateral aid.

additional; confirming: collateral evidence;collateral security.

secured by collateral: a collateral loan.

aside from the main subject, course, etc.; secondary: These accomplishments are merely collateral to his primary goal.

descended from the same stock, but in a different line; not lineal: A cousin is a collateral relative.

pertaining to those so descended.

situated at the side: a collateral wing of a house.

situated or running side by side; parallel: collateral ridges of mountains.

Botany. standing side by side.

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Origin of collateral

First recorded in 1350–1400; Middle English, from Medieval Latin collaterālis, equivalent to col- a variant of com- + Latin laterālis “on the side of the body”; see col-¹ lateral

OTHER WORDS FROM collateral

col·lat·er·al·i·ty

[koh-lat-uh-ral-i-tee], /koʊˌlæt əˈræl ɪ ti/, col·lat·er·al·ness, nouncol·lat·er·al·ly, adverb

Words nearby collateral

collarette, collar rot, collat., collate, collated, collateral, collateral artery, collateral circulation, collateral damage, collateral fissure, collateral hyperemia

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2021

FINANCIAL

What does collateral mean in loans?

Collateral is an asset, such as a home or a car, pledged by a borrower that a lender accepts as security against a loan in case the borrower for any reason cannot pay back the loan.

If a borrower fails to pay back a loan, the lender can seize the collateral and sell it in order to recover the loan amount.

Examples of collateral in a sentence

“A secured loan gets backed by some type of collateral, such as your vehicle or a savings account.”
—”What Is A Personal Loan?” Rocket Loans. Retrieved March 15, 2020.

“Since they don’t tend to have collateral attached, personal loans tend to come with higher interest rates than car and mortgage loans.”
—”The Best Ways To Finance Your Budding Business” Rocket Loans. Retrieved March 15, 2020.

“By contrast, an unsecured personal loan isn’t backed by collateral, which means that a lender will decide whether you qualify based on factors like your credit history and income.”
—”What Is A Personal Loan?” Rocket Loans. Retrieved March 15, 2020.

How to use collateral in a sentence

For the medical community, in particular, the war on drugs produced widespread collateral damage in the form of treatments undiscovered, in the form of human suffering unalleviated, in the form of scientific knowledge unattained.
How Are Psychedelics and Other Party Drugs Changing Psychiatry? (Ep. 433)|Stephen J. Dubner|October 1, 2020|Freakonomics
Soon, even their dream home was at risk as collateral for a line of credit from AvidBank.
The Mystery House: How a Suspicious Multimillion Dollar Real Estate Deal Is Connected to California’s Deadliest Fire|by Scott Morris, Bay City News Foundation|August 26, 2020|ProPublica
Most of these sites—notably Compound and Maker—rely on a decentralized network of lenders and borrowers, who use smart contracts to arrange collateral and payment terms.
Crypto soars again as traders embrace ‘DeFi’ and ‘yield farming’—but some see echoes of the 2017 bubble|Jeff|August 25, 2020|Fortune
Sid Coelho-Prabhu, who is leading the Coinbase wallet initiative, says any loans consumers make on the platform are secure, since they are backed by borrowers’ collateral.
Crypto soars again as traders embrace ‘DeFi’ and ‘yield farming’—but some see echoes of the 2017 bubble|Jeff|August 25, 2020|Fortune

The move comes in the wake of mounting concern about the scale of predatory lending given the proliferation of startups offering online, collateral-free loans in Kenya.
Kenya is doubling down on regulating mobile loan apps to combat predatory lending|Yomi Kazeem|July 23, 2020|Quartz
Horace had been playing poker with a mortician, who had put the car up as collateral.
Those Kansas City Blues: A Family History|Katie Baker|October 24, 2014|DAILY BEAST
In 2008, it was looking at a death spiral: cut credit ratings, claims on the policies, and collateral calls.
Remember the $182 Billion AIG Bailout? It Just Wasn’t Generous Enough|Daniel Gross|October 15, 2014|DAILY BEAST
The euphemism of “collateral damage” comes with that package.
Blood and War: The Hard Truth About ‘Boots on the Ground’|Clive Irving|September 22, 2014|DAILY BEAST
This can cause women to end up as collateral, even when they themselves have committed no wrong.
How India’s Honor Culture Perpetuates Mass Rape|Amana Fontanella-Khan|July 14, 2014|DAILY BEAST
That night Gasol hobbled off his home court with a torn medial collateral ligament in his left knee.
The Nate Silver of Sports Injuries|Evin Demirel|May 26, 2014|DAILY BEAST
From one of these, which may be considered as collateral primary meanings, it must therefore be deduced.
The Ordinance of Covenanting|John Cunningham
The commentary is not very helpful, and discusses collateral questions rather than the dream itself.
Chaucer's Works, Volume 1 (of 7) -- Romaunt of the Rose; Minor Poems|Geoffrey Chaucer
The direct and collateral hereditary tendency appears to indicate a diathetic origin.
The Treatment of Hay Fever|George Frederick Laidlaw
At the front it has a one-sided irregular look; and this is owing to the non-completion of a collateral spire.
Our Churches and Chapels|Atticus
If the horse is the source, or principal trunk, the zebra and the ass will be collateral branches.
Buffon's Natural History. Volume IX (of 10)|Georges Louis Leclerc de Buffon

British Dictionary definitions for collateral

collateral

/ (kɒˈlætərəl, kə-) /

noun

security pledged for the repayment of a loan
(as modifier)a collateral loan

a person, animal, or plant descended from the same ancestor as another but through a different line

adjective

situated or running side by side

descended from a common ancestor but through different lines

serving to support or corroborate

aside from the main issue

uniting in tendency

Derived forms of collateral

collaterally, adverb

Word Origin for collateral

C14: from Medieval Latin collaterālis, from Latin com- together + laterālis of the side, from latus side

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Medical definitions for collateral

collateral

[ kə-lăt′ər-əl ]

adj.

Indirect, subsidiary, or accessory to the main thing.

Having an ancestor in common but descended from a different line.

A branch of a nerve axon or blood vessel.

A collateral relative.

Other words from collateral

col•lat′er•al•ly adv.

Cultural definitions for collateral

collateral

Property or its equivalent that a debtor deposits with a creditor to guarantee repayment of a debt.

collateral

Origin of collateral

OTHER WORDS FROM collateral

Words nearby collateral

FINANCIAL

What does collateral mean in loans?

Examples of collateral in a sentence

Other terms connected with the topic of collateral

Words related to collateral

How to use collateral in a sentence

British Dictionary definitions for collateral

Derived forms of collateral

Word Origin for collateral

Medical definitions for collateral

Other words from collateral

Cultural definitions for collateral