The Economic Times  Oct 14  Comment 
Sebi allowed clearing members to have up to 30 per cent of their total liquid assets as commodities collateral.
The Hindu Business Line  Oct 6  Comment 
Faircent, a peer to peer lending marketplace, has tied up with bike taxi aggregator Baxi to provide easy access of two-wheeler loans to Baxi drivers. Faircent’s maiden venture into auto loans would e...
Mondo Visione  Sep 7  Comment 
The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of the ISDA 2016 China Collateral Memorandum. The memorandum provides information on the legal issues involved in exchanging collateral with a...  Jul 20  Comment 
Supreme court says lies that do not affect overall value of a claim are irrelevant and cannot be used by insurers as a reason to reject it A supreme court ruling could prompt a wave of fraudulent claims on household and car policies after it...
The Economic Times  Jul 15  Comment 
In a circular to clearing corporations, Sebi asked them not to accept such FDRs while trading or clearing members having already deposited their own FDRs or that of associate banks would need to replace them with other eligible collaterals within...
The Economic Times  Jul 13  Comment 
"The committee has firmed up its view and will submit its report to the Coal Ministry in a couple of days. There is a broad consensus that the UMPPs can assign or mortgage their coal mines to their project lenders," a source said.
The Economic Times  Jul 10  Comment 
On one hand the world of diamonds is grappling with a slow market, instances of defaults and frauds; on the other, Standard Chartered is tightening risk standards.
The Hindu Business Line  Jun 28  Comment 
Suggests IT-enabled integrated framework, centralised database
Mondo Visione  Jun 22  Comment 
Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), today gave a speech at the International Securities Lending Association’s (ISLA) 25th Annual Securities Finance and Collateral Management Conference. The...


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Collateral is an asset or assets offered by a borrower in order to procure a loan. Should the borrower default on his payment(s), the lender would take possession of the collateral, which may then be sold to recoup the lender's losses.

Technically, collateral could be any asset, though typically it takes the form of personal property, investment securities, or real estate, the values of which can be readily determined.

Other terms in common use in the market are"margin", "margin asset" and "margin agreement" and similar terms using "credit support" instead of "collateral" or "margin," collateral", "collateral asset" and"collateral agreement." [1]

When a lender offers a loan against collateral offered by the borrower, the lender is said to take a security interest in the collateral. [2]


  • A woman takes out a mortgage to pay for her home. As collateral, she offers the home itself. Should she default on the loan, the lender (typically a bank) would take possession of the home. The bank may then sell the property to recoup its losses.
  • A man needs a cash loan to pay for several large, immediate expenses. As collateral, he offers the lender his car. Should he default on the loan the lender would take possession of the car, which he or she may sell to recoup losses.
  • In Uruguay, no private bank would accept cattle as collateral for a loan. By contrast, in Kansas, cattle are considered the best collateral for a loan.

14c., "accompanying," also "descended from the same stock," "side by side, "together" "parallel, along the side of" 16c., "colleague, associate." Meaning "thing given as security" is from 1832, Amer.Eng., from plrase collateral security (1720). [3]

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