General Mathematics

Activity #7
2nd quarter
Review
What is consumer credit?

What are the four factors that need to be

considered in loan transaction?

What are the 5 C’s of credit?

I just want to know…
What is your idea about consumer
loans?

What do you think are the examples of

consumer loans?
Learning targets
Illustratebusiness and consumer loans.
Distinguish between business and
consumer loans.
Solve problems involving business and
consumer loans (amortization,
mortgage).
Essential Question

Why do consumers avail

loan?
Content:

“Business and Consumer

Loans”
Lending to retail customers or individuals
is not much different from business loans.
In the context of marketing, it is just a
matter of segmentation in which the loan
product features are geared toward the
demographics, psychographics and
behavior of the primary target market.
The following are the type of consumer
or individual loans in the Philippines:
Housing or mortgage loan
Auto or car loan
Salary or Personal loan
Credit card
 Credit card terms
Revolver – one who pays at least the minimum amount due on the credit
card bill but does not pay the total outstanding balance in full.
Transactor – one who pays the amount in full on or before the statement
due date
Payment due date – last day for payment so that the account does not
become delinquent and does not incur a late charge
Statement Date – last day of transaction posted for the period covered in
the account of statement
Total amount due – total amount owed, inclusive of purchases, cash
advances, finance charges penalties, fees, etc. as of the statement date
Minimum amount due – the minimum amount that the credit cardholder
needs to pay on or before the payment due date for a particular billing
period or cycle as defined under the terms and conditions stated in the
account/billing statement
Finance charge – refers to the interest charged to the credit cardholder.
According to the BSP Manual of Regulations for Banks (MORB), no
finance charge should be imposed if the credit cardholder pays the total
amount due in full on or before the payment due date for a particular billing
cycle.
The following collaterals are required before
a retail customer can avail of a particular type
of loan:

Housing and lot loan – Transfer Certificate of

Title (TCT)
Condominium loan – Condominium Certificate of
Title (CCT) for housing
Car loan – Official receipt / Certificate of
Registration (OR/CR)
Salary loan, personal loan, and credit card –
employment contract, pay slips, and Income Tax
Return (ITR),
Size Up Activity
Individual Activity
1. If you were given a chance, what is the
type of consumer loan that you want to
avail? Why?
2. Why do you think there are people who
can’t resist to avail loan even they have
an outstanding one?
Gospel Values
Patience

“Rest in the LORD and wait patiently for

Him; Do not fret because of him who
prospers in his way, Because of the man
who carries out wicked schemes.”
-Psalm 37:7