Loans

Question 1

Is a debt contract entered into by two parties, an organization or individual, through a note which states the principal amount, interest rate, the mode of payment including the date of the payment.

Answer 1

FINANCIAL LOAN

Question 2

a loan granted to a borrower who gives the lender the right to take possession of pledged borrower’s asset in case the former failed to settle the obligation.

Answer 2

secured loan

Question 3

on the other hand, is a loan that is not protected in case the borrower failed to meet the terms of repayment.

Answer 3

unsecured loan

Question 4

is lent to business companies to fund their business operating costs.

Answer 4

business loan

Question 5

borrowed for the purpose of making personal or family purchases. Credit cards, store cards, personal loans, retail loans and mortgages other than house purchases and commercial loans are some common forms of consumer loans

Answer 5

consumer loan

Question 6

asset presented by a borrower that is pledged to be given to the lender in case the borrower defaulted the loan or failed to pay back the loan.

Answer 6

Collateral

Question 7

an individual who agree to pay back a loan if the borrower fails to pay the loan on time. When a business corporation applies for a loan, the business owner usually signs as both borrower and him

Answer 7

Guarantor

Question 8

Usually, a consumer loan borrower is required to present copy of tax return and credit certificate

Answer 8

Documentations

Question 9

Is a type of secured loan that makes use of real property such as house or lot as collateral

Answer 9

MORTGAGE

Question 10

Is the process of paying a loan and its interest through series of regular equal payments

Answer 10

AMORTIZATION

Question 11

. This type of loan is usually entered into by real property buyers who do not have enough cash on hand to purchase the property

Answer 11

MORTGAGE