In the simplest terms, collateral is a valuable asset that a borrower pledges to a lender to secure repayment of a loan. If the borrower can’t repay, the lender can seize and sell that asset to ...

Collateral is a valuable asset (like a car, house or even cash) you can pledge to secure a loan. If you fail to repay your loan, the lender can seize whatever you've put up as collateral. Financial ...