Something of value given or pledged as security for payment of a loan is called _____.

Question

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Collateral refers to an asset or property that is pledged by a borrower to a lender as security for a loan. This is done to provide assurance to the lender that the borrower will repay the loan, as failure to do so may result in the lender taking possession of the collateral. Chargeback and personal equity are not related to this concept, and while capital equity may also be used as collateral in certain circumstances, it is not the term used to describe it.

Something of Value Given or Pledged as Security for Payment