I had to put up my house as … for bank loan,

Analyze the question: The sentence asks for the word that describes property offered to a bank to secure a loan: "I had to put up my house as ___ for a bank loan."

Explain the concept: In banking and finance, collateral means an asset (such as a house, land, or a car) that a borrower pledges to a lender as security. If the borrower fails to repay, the lender can take the asset.

Check each option:

• A. pledge – A pledge is a promise, or the act of giving something as security. We would say "I pledged my house", but "put up my house as a pledge" is less natural and less precise than "collateral".
• B. agreement – This is a contract or understanding. A house is not "an agreement", so it doesn't fit.
• C. collateral – This is the asset offered as security for a loan. It fits perfectly: "put up my house as collateral for a bank loan."
• D. surety – A surety is usually a person who guarantees to pay if the borrower defaults (a guarantor), or the guarantee itself. A house is not normally called a surety, so it is not the best fit.

Tip: Remember that collateral = the property and surety = the person (guarantor). If the blank is something you put up such as a house, land or a car for a loan, think "collateral".