LANCE ALLUYSIUS D.

DELA CRUZ BSBA HRM 1 – C

BUSINESS FINANCE ACTIVITY 1 and 2

5 CS OF CREDIT FACTORS IMPLICATION

1. CHARACTER  Credit History  To check if the
borrower was able to
pay his loan obligation
in the past.
2. CAPACITY  Credit Capability  To check the capacity
by looking at how much
debt you have and
comparing it to how
much income you earn.
3. CAPITAL  Credit Income  The ability to check
your capital which
includes your savings,
investments and assets
that you are willing to
put toward your loan.
4. COLLATERAL  Credit Properties  To check if the
borrower has any assets
that can be used as a
payment for his/her
debt.
5. CONDITION  Credit Status  To check if he/she is
employed at his/her
current job, how his/her
industry is performing,
and future job stability.

TYPES OF CREDIT NAME OF BANK NAME OF LOAN BRIEF DESCRIPTION

1. Installment  Security Bank  Home Loan  A housing loan
Accounts is an
agreement
between a
creditor and a
borrower
where a sum of
money is lent
for the
acquisition of
real estate
property and
related assets.
2. Installment  Metrobank  Car Loan  A Vehicle Loan
Accounts is a loan that
allows you to
 purchase two
and four
wheelers for
personal use.
Typically, the
buyer must
repay the loan
in Equated
Monthly
Instalments
over a specific
tenure at a
specific
interest rate.
3. Revolving  AUB  Student Loan  An agreement
Credit by which a
student at a
college or
university
borrows
money from a
bank to pay for
their education
and then pays
the money
back after they
finish studying
and start
working.
4. Charge  BPI  Emergency  Short-term
Accounts Loan loans that are
typically used
for emergency
situations.
5. Lay Away Plan  BDO  Appliance Loan  It allows you to
purchase a
household
appliance with
borrowed
funds that you
can repay over
time, usually in
monthly
increments.