noun

collateral

kuh-LA-tuh-ruhl

noun

An asset pledged as security for a loan, which the lender can claim if the borrower fails to repay.

"He put up his car as collateral for the loan."

"The bank required collateral before approving the mortgage."

adj

Secondary or incidental, alongside the main effect or target.

"The report focused on collateral damage from the policy change."

How to Use Collateral

Learner’s notes

In plain EnglishUsually a financial term for property put up as a guarantee on a loan; also used for side effects that come alongside a main action.

Common pairings

put up collateral collateral damage

collaterals plural

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He put up his car as _____ for the loan.

From Medieval Latin collateralis, from Latin col- ("together with") and latus ("side") — literally "at the side".

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