Collateral, especially within banking, may traditionally refer to secured lending. Collateral presents unilateral obligations, secured in the form of property, surety, guarantee or other as collateral (originally denoted by the term security).

In many developing countries, the use of collateral is the main way to secure bank financing. The ease of acquiring a loan depends on the ability to use assets, whether real estate or any other; as collateral.

Source: Collateral (finance) - Wikipedia, the free encyclopedia