Our lady of Fatima university

COLLEGE OF ARTS AND SCIENCES

Math and Physics Department
Pampanga Campus

Week 12:
KEY CONCEPTS OF BUSINESS AND CONSUMER LOANS
Engr. Fernando L. Pascual Jr., RCE
Lecturer
I. KEY CONCEPTS OF KEY CONCEPTS OF BUSINES AND CONSUMER
LOANS

Real-life Steps and Solves problem

situations using Properties of a involving
BUSINESS BUSINESS BUSINESS
AND AND AND
CONSUMER CONSUMER CONSUMER
LOANS LOANS LOANS

Learning Outline
What is a LOAN?
A loan is an
arrangement in which a
lender gives money
(principal) to a borrower in
exchange for the future
repayment of the principal
along with interest or other
finance charges.
 Basic Concepts of LOANS

1. Consumer Loan -
a loan given to an
individual for personal
purposes.
 Basic Concepts of LOANS

2. Business Loan - a
loan given to an
individual or a company
for business purposes.
 Basic Concepts of LOANS

3. Collateral -
assets used to
secure the loan.
 Basic Concepts of LOANS

4. Mortgage – a loan
secured by a collateral,
that the borrower is
obligated to pay at
specified terms.

mortgagor : borrower
mortgagee : lender
 EXAMPLES
A loan given to Eva for the tuition fee of her son is
an example of CONSUMER LOAN.

A loan given to Jollibee Corporation to pay for the

business expansion is an example of a BUSINESS
LOAN.
 Identify the following if Business or Consumer Loan.

1. Mr. Agustin plans to have a barbershop. He wants to

borrow some money from the bank in order for him to
buy the equipment and furniture for the barbershop.
ans. Business loan

2. Shiela wants to borrow money from a bank to finance

the college education of their son.
ans. Consumer loan
 Identify the following if Business or Consumer Loan.

3. Sheila wants to tour around the country. She

obtained a P100,000 loan from a bank.
ans. Consumer loan

4. Kasim borrowed money from a cooperative group to

buy equipment for his vulcanizing shop.
ans. Business loan
ORIENTATION DAY |

THANK
YOU