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.

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

In other words, highly capitalized (i.e., collateralized) borrowers benefit from a large credit flow and vice versa.

Collateral, especially within banking, traditionally refers to secured lending (also known as asset-based lending). More-complex collateralization arrangements may be used to secure trade …

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 18, 2025 · 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 …

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

EXECUTIVE SUMMARY In a response to a request from the G20 IFA Working Group, this note provides a framework for public lenders and borrowers to assess collateralized financing …

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 …