Understanding

Consumer and
Business Loans
 CONSUMER LOAN - money lent to an
individual for personal or family purpose

– Encourage consumption
• Rather than saving for the future, they
encourage spending now.
– Are very expensive
• They reduce what you might otherwise have
saved for your goals.
– Are generally unnecessary
• Other than for education and a home
• Types of Consumer Loans
– General consumer loans
• Single payment loans
• Installment loans
– Special consumer loans
• Auto loans
• Home equity loans
• Student loans
• Payday loans
 BUSINESS LOAN -money lent
specifically for a business purpose. It may
be used to start a business or to have a
business expansion
Loan can be guaranteed by the owner
– Borrower is personally liable for any
unpaid balance
– Lender may require a personal financial
statement of the borrower
 Identifying Kinds of Loans
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.

business loan
 Identifying Kinds of Loans
2. Mr and Mrs Craig wants to
borrow money from the bank to
finance the college education of
their son.

Consumer loan
 Identifying Kinds of Loans
3. Mr. Alonzo wants to have some
improvements on their 10-year
old 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.
Consumer loan
 Identifying Kinds of Loans
4. Mr. Samson owns a siomai food
cart business. He wants to put
another food cart on a new mall
in the other city. He decided to
have a loan to establish the new
business.
Business loan
 SCHEDULE
Oct. 16 - Lesson at Genyo Lab
Oct. 17-18 PETA MAKING in the
classroom
Oct 22 Quiz Logarithm and
Genyo Lesson
 POINTERS
EXPONENTIAL AND LOG
FUNCTIONS
SIMPLE AND COMPOUND INTEREST
SIMPLE AND GENERAL ANNUITIES
CONSUMER AND BUSINESS LOAN
TERMS AND COMPUTATIONS