Oct 11, 2025 · On a collateralized loan, most secured lenders will base the principal (the amount of money they lend) on the property's appraised value as collateral—and then lend about 70% …

The meaning of COLLATERALIZE is to make (a loan) secure with collateral.

Collateralization is a mechanism of securing loans by offering assets to the borrower as collateral. Such collaterals usually provide a way faster and ensure access to loans. Banks and financial …

COLLATERALIZE definition: to secure (a loan) with collateral. See examples of collateralize used in a sentence.

COLLATERALIZE definition: to give property as collateral for a loan, bond, etc.: . Learn more.

Apr 28, 2022 · Collateralization is the process of securing a loan with valuable assets, which protects lenders from the risk of default. If the borrower defaults on a collateralized loan, the …

Nov 1, 2025 · Collateralization is the practice of securing a loan by pledging valuable assets, which provides the lender with a safety net against the potential risk of the borrower defaulting …

Feb 9, 2026 · Key Takeaways Collateralization provides a lender with security against default on a loan. Because it greatly reduces the lender's risk, the interest rates on collateralized loans are …

Apr 26, 2024 · Collateralization describes the process in which a loan agreement is secured by a borrower from pledging an asset as collateral.

Feb 26, 2025 · What is a collateralized debt obligation? A collateralized debt obligation (CDO) is a financial product that includes assets like loans, mortgages, bonds, and other debt types.