What is collateral?

Answer When determining whether or not to grant a loan, banks consider the risk involved or the likelihood that the institution will suffer a loss as a result of lending the money. One way that banks mini... Read More »

Top Q&A For: What is collateral

What is a collateral loan?

A collateral loan means that the borrower has pledged some type of property as security for the loan. Examples of collateral loans are auto loans and mortgage loans. The terms can vary from lender ... Read More »

What is alternative collateral?

Collateral is given to ensure repayment of a loan. Traditional forms of collateral, such as property, machinery, equipment and inventory, are giving way to alternative collateral, which can be othe... Read More »

What is a collateral agreement?

A collateral agreement is an agreement between a person or a business and the government. This type of contract is designed to collect taxes in excess of previous taxes due and is considered an add... Read More »

What Is a Cross Collateral Mortgage?

Cross collateralization is a method used by lenders to add more security to a loan transaction. It is accomplished by the lender placing a lien on another property in addition to the property that ... Read More »