Definition, Meaning & Synonyms
aval
Noun
/ˈæv.əl/
Definition
A term used in finance to indicate a guarantee or an endorsement of a certain obligation, signifying that one party agrees to take responsibility for another’s debt.
Examples
- The bank required an aval from the business owner before granting the loan.
- She signed the aval to ensure her friend’s credit was approved.
- In many countries, an aval is a common practice in trading and finance.
Meaning
In simpler terms, ‘aval’ refers to a promise made by an individual or entity to pay for someone else’s loan if that person defaults.
Synonyms
- Guarantee
- Endorsement
- Surety
