Business and Consumer Loans Analysis
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Questions and Answers

What is the main purpose of a consumer loan?

  • To buy a brand-new car (correct)
  • To start a business
  • To have a business expansion
  • To open a small cafeteria

    • What is the main purpose of a business loan?

  • To have a business expansion (correct)
  • To open a small cafeteria
  • To buy a brand-new car
  • To lend money to individuals

    • What is collateral in the context of loans?

  • The type of loan (consumer or business)
  • Assets used to secure the loan (correct)
  • The interest rate on the loan
  • A person's monthly income

    • In which loan type, both consumer and business loans, might require a collateral?

    <p>Both Consumer and Business Loans</p> Signup and view all the answers

    What is the term of the loan?

    <p>The time to pay the entire loan</p> Signup and view all the answers

    Which type of loan is specifically for personal or family purposes?

    <p>Consumer Loan</p> Signup and view all the answers

    Which of the following is a requirement for a consumer loan?

    <p>Submission of employee pay slips</p> Signup and view all the answers

    What is typically used as collateral for both consumer and business loans?

    <p>Real estate or other investments</p> Signup and view all the answers

    What type of loan typically has a higher interest rate?

    <p>Business loan</p> Signup and view all the answers

    In which scenario is a business loan being sought?

    <p>Mr. Agustin's plan to have a barbershop</p> Signup and view all the answers

    Which type of loan requires the lendee to submit a credit report and income tax returns?

    <p>Business loan</p> Signup and view all the answers

    What is the term for the method of paying a loan (principal and interest) on installment basis?

    <p>Amortization</p> Signup and view all the answers

    What is defined as assets used to secure the loan?

    <p>Collateral</p> Signup and view all the answers

    What is a mortgage on a movable property called?

    <p><em>Chattel Mortgage</em></p> Signup and view all the answers

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