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
money lent specifically for
a business purpose. It may
be used to start a business
or to have a business
expansion.
Collateral
assets used to secure
the loan. It may be
real-estate or other
investments.

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,
income tax returns, and company financial
statement.
The bank or the lending institution may
require a credit report, bank statements,
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