Glossary
Collateral
An asset pledged to back a loan
Collateral is an asset pledged to be handed over if you can't repay a loan. It lowers the lender's risk and thus the rate — a home used to back a mortgage is the classic example.
Glossary
An asset pledged to back a loan
Collateral is an asset pledged to be handed over if you can't repay a loan. It lowers the lender's risk and thus the rate — a home used to back a mortgage is the classic example.