What is collateral? a type of unsecured credit property given as security for a loan funds borrowed to buy property a payment to reduce overall debt
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Collateral refers to property or assets that a borrower offers as security to a lender for a loan. It is a type of security interest that the lender holds in exchange for providing a loan. If the borrower fails to repay the loan according to the agreed-upon terms, the lender may have the right to seize and sell the collateral to recover the outstanding debt.
So, the correct definition of collateral from the options provided is:
property given as security for a loan
This definition reflects the common understanding of collateral in the context of loans and financial transactions.