Home / Free Study Material / Spell Bee Summer / Class 5 Spell Bee Summer Words / collateral

Spell Bee Word: collateral


Basic Details

Word: Collateral

Part of Speech: Noun

Meaning: Something valuable, such as land or gold, that a person promises to a lender; if the loan is not repaid, the lender keeps it.

Synonyms: security, guarantee, pledge

How to Spell Collateral

Syllables: col - lat - er - al

Tricky part: Double l at the start, then a single t. The middle vowel is e: lat-er, as in the word later.

Watch out for: colateral, collatteral, collaterol

Memory tip: Col + later + al: if you do not pay, the bank takes it later.

Usage Examples

Example 1: The farmer offered his land as collateral for the tractor loan.

Example 2: Without collateral, the bank refused to lend him the money.

Example 3: Her gold bangles were kept as collateral until the loan was paid.

Fun Fact

Collateral comes from Latin col, together, and latus, side. It first meant side by side, which is why a cousin is called a collateral relative.

Practise the CREST Way

Spell-o-Spell

Choose the incorrectly spelt word:

a) colateral
b) guarantee
c) interest
d) mortgage

Show answer

a) colateral. Collateral starts with col and then another l.

Word Cookie

Insert the correct pair of letters to form a word:

coll_t_ral

a) a, a
b) a, e
c) e, e
d) o, e

Show answer

b) a, e. The word later sits inside collateral.

Word Connection

Choose the synonym of the word: collateral

a) security
b) debt
c) profit
d) refund

Show answer

a) security. Security is what a lender holds in case a loan is not repaid.

Mingle-Mangle

Form a meaningful word from the jumbled letters:

rallecotal

a) cathedral
b) lateral
c) collateral
d) collector

Show answer

c) collateral. Three l's and two a's leave only collateral.

Multiple Choice Questions

1. Why does a bank ask for collateral?

a) to be safe if the loan is not repaid
b) to build new branches
c) to pay its staff
d) to give the borrower a gift

Show answer

a) to be safe if the loan is not repaid

2. Which of these could be used as collateral?

a) a cup of tea
b) a pencil
c) a house
d) a bus ticket

Show answer

c) a house

Associated Words

celestialcatastrophebadgedomineeringfundraiser
purificationclumsilyprohibitpreservemournful

Next steps

How to participate in CREST International Spell Bee

The CREST International Spell Bee (CSB) is conducted in two editions – CREST International Spell Bee - Summer (CSB) and CREST International Spell Bee - Winter (CSBW) – giving students across the globe an opportunity to showcase and enhance their spelling proficiency. Designed for young learners from Senior KG to Class 8, the competition focuses on word-building, pronunciation, and vocabulary enrichment, helping students develop strong linguistic skills.

Steps to Participate:

Step 1: Visit the registration page and complete the registration with your desired subject.

Step 2: After Registration done, do login at www.crestolympiads.com/login.

Step 3: After login, go to dashboard and click on Book slot/Take Exam

Step 4: Schedule your exam date and preferred time.

Step 5: Log in with your credentials on the exam day at the scheduled time and take the exam.

70%