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Smart Money · Simple Words · India

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Collateral Kya Hai? — Matlab, Definition & Example

Definition

Collateral wo asset hai jo loan ki security ke roop mein pledge kiya jaata hai. Default hone pe lender collateral seize kar sakta hai.

💡 Real Example

In a home loan, the property itself is the collateral. If you stop paying EMIs, the bank can auction your house to recover the loan amount.

🇬🇧 English Mein (Collateral)

Collateral is an asset pledged as security for a loan. If the borrower defaults, the lender can seize the collateral. Secured loans (home, car, gold) require collateral and have lower interest rates. Unsecured loans (personal, credit card) don't need collateral but cost more.

❓ Common Questions

Collateral kya hai simple words mein?
Collateral wo asset hai jo loan ki security ke roop mein pledge kiya jaata hai. Default hone pe lender collateral seize kar sakta hai.
Collateral ka ek example do?
In a home loan, the property itself is the collateral. If you stop paying EMIs, the bank can auction your house to recover the loan amount.
Collateral ko English mein kya kehte hain?
English mein ise Collateral kehte hain. Collateral is an asset pledged as security for a loan. If the borrower defaults, the lender can seize the collateral. Secured loans (home, car, gold) require collateral and have lower interest rates.