Scribd Logo
Upload

Welcome to Scribd!

  • 83 views

    Genmath Loans

    Uploaded by

    ninjark
    The document discusses business loans and consumer loans. It defines both loan types and provides examples to distinguish between them. Business loans are used for business purposes like starting or expanding a company, while consumer loans are given to individuals for personal or family expenses. Both loan types may require collateral, but business loans typically have higher interest rates and shorter terms than consumer loans. The document also provides practice examples for the reader to identify whether hypothetical loan scenarios describe business loans or consumer loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Genmath Loans

    Uploaded by

    ninjark
    83 views22 pages
    The document discusses business loans and consumer loans. It defines both loan types and provides examples to distinguish between them. Business loans are used for business purposes like starting or expanding a company, while consumer loans are given to individuals for personal or family expenses. Both loan types may require collateral, but business loans typically have higher interest rates and shorter terms than consumer loans. The document also provides practice examples for the reader to identify whether hypothetical loan scenarios describe business loans or consumer loans.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses business loans and consumer loans. It defines both loan types and provides examples to distinguish between them. Business loans are used for business purposes like starting or expanding a company, while consumer loans are given to individuals for personal or family expenses. Both loan types may require collateral, but business loans typically have higher interest rates and shorter terms than consumer loans. The document also provides practice examples for the reader to identify whether hypothetical loan scenarios describe business loans or consumer loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    83 views22 pages

    Genmath Loans

    Uploaded by

    ninjark
    The document discusses business loans and consumer loans. It defines both loan types and provides examples to distinguish between them. Business loans are used for business purposes like starting or expanding a company, while consumer loans are given to individuals for personal or family expenses. Both loan types may require collateral, but business loans typically have higher interest rates and shorter terms than consumer loans. The document also provides practice examples for the reader to identify whether hypothetical loan scenarios describe business loans or consumer loans.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 22

    Business

    Loans and
    Consumer
    Loans
    Learning Outcomes
    At the end of the lesson, the
    learner is able to illustrate business
    and consumer loans and
    distinguish between business and
    consumer loans.
    LOAN
    What is a LOAN?
    - a sum of money that one
    or more individuals or
    companies borrow from
    banks or other financial
    institutions so as to
    financially manage
    planned or unplanned
    events.
    Definition of Terms
    Business Loan Collateral
    money lent specifically for assets used to secure
    a business purpose. It may the loan. It may be
    be used to start a business real-estate or other
    or to have a business investments.
    expansion.

    Consumer Loan Term of the Loan


    money lent to an time to pay
    individual for personal or the entire loan.
    family purpose.
    Basics of Consumer Loans and Business Loans

    Business Loans Consumer Loans


    Loans for businesses. Loans given to individuals for personal or
    family purpose

    Both may require a collateral – the collateral for both loans may be
    real estate or other investments.

    For business loans, they can use


    equipment, fixtures or furniture as
    collateral.

    They require business owners to sign They do not usually require a guarantor.
    guarantors.
    Basics of Consumer Loans and Business Loans

    Business Loans Consumer Loans


    The lendee has to submit a credit report, The bank or the lending institution may
    income tax returns, and company financial require a credit report, bank statements,
    statement. and an income tax return, and if the
    lendee is employed, a certificate of
    employment and employee pay slips.

    The term of the business loan is generally


    shorter than the consumer loan.

    The interest rate for the business loan is


    usually higher than that for the consumer
    loan.
    PRACTICE!
    Identify whether the following is
    a consumer or business loan.
    Business Loan
    Mr. Agustin plans to have a
    barbershop. He wants to borrow

    01
    some money from the bank in order
    for him to buy the equipment and
    furniture for the barbershop.
    Consumer Loan
    Mr. and Mrs. Craig wants to borrow

    02
    money from the bank to finance the
    college education of their son.
    Consumer Loan
    Mr. Alonzo wants to have some
    improvements on their 10-year old

    03
    house. He wants to build a new room
    for their 13-year old daughter. He will
    borrow some money from the bank
    to finance this plan.
    Business Loan
    Mr. Sanson owns a siomai food cart
    business. He wants to put another

    04
    food cart on a new mall in the other
    city. He decided to have a loan to
    establish the new business.
    Business Loan
    Roan has a computer shop. She

    05
    owns 6 computers. She decided to
    borrow some money from the bank
    to buy 10 more computers.
    Evaluation
    Identify whether the following is
    a BUSINESS LOAN or
    CONSUMER LOAN
    1.
    Mr. Lim wants to have another branch
    for his cellphone repair shop. He
    decided to apply for a loan that he can
    use to pay for the rentals of the new
    branch.

    2.
    Trillas runs a trucking business. He
    wants to buy three more trucks for
    expansion of his business. He applied
    for a loan in a bank.
    3.
    Mrs. Alonzo decided to take her
    family for a vacation. To cover
    the expenses, she decided to
    apply for a loan.

    4.
    Glenn decided to purchase a
    condominium nit near his
    workplace. He got a loan worth
    ₱2,000,000.
    5.
    Mr. Galang purchased
    renovated her house ₱80,000.
    This was made possible because
    of an approved loan worth
    ₱75,000.
    Business Loan
    1.
    Mr. Lim wants to have another branch
    for his cellphone repair shop. He
    decided to apply for a loan that he can
    use to pay for the rentals of the new
    branch.

    Business Loan
    2.
    Trillas runs a trucking business. He
    wants to buy three more trucks for
    expansion of his business. He applied
    for a loan in a bank.
    Consumer Loan

    3.
    Mrs. Alonzo decided to take her
    family for a vacation. To cover
    the expenses, she decided to
    apply for a loan.

    Consumer Loan
    4.
    Glenn decided to purchase a
    condominium nit near his
    workplace. He got a loan worth
    ₱2,000,000.
    Consumer Loan

    5.
    Mr. Galang purchased
    renovated her house ₱80,000.
    This was made possible because
    of an approved loan worth
    ₱75,000.
    THANK YOU!
    Ryza Carla Dereza
    Adrian Paul Dimasuhid
    Mika Dylan Bartido
    Abigail Ruzel Balajula

    You might also like