Credit Facility is basically a term used to describe credit issued

for business purposes. This can be short- term revolving credit

such as a Line of Credit, or it can a longer term credit issue such

as a term loan

Long-Term Short-term Credit Facilities include Lines of Credit,

credit cards, and short-term term loans

A facility is a formal financial assistance program offered by a

lending institution to help a company that requires operating

capital. Types of facilities include overdraft services, deferred

payment plans, lines of credit, revolving credit, term

loans, letters of credit and . A facility is essentially another

name for a loan taken out by a company.

When goods, services, or money is

received in exchange for a promise to pay

in the future, with interest.

Lender- the person or organization who has

the ability to provide the individual with a

loan.

Borrower- the person or organization that is

receiving the money from the lender

When a lender is considering granting credit

to the borrower, they need to believe the

borrower has the ability and the willingness

to pay them back.

How do they decide whether or not to give

you a loan?

Character - a person’s honesty and

reliability, determined by their history of

repaying bills on time.

Capital - an evaluation of a person’s net

worth.

Capacity - the income a person has to be

able to repay the loan. Based on job status

and how many other loans they may have.

Collateral - property which can be seized

(taken) if a person does not repay the loan.

Conditions - the general state of the

economy

Term Loan

Personal

Loan

Home

Loan

Property

Loan

Vehicle

Loan

Education

Loan

Gold

Loan

Business Loan

Consolidated

LoanPay Day

Loan

Policy

LoanConstruction

Equipment

Loan

TermClassification

Long Term(<3years)

Medium Term(1-3 years)

Short Term(1 year)

• Loan in simplest terms can be explained as a

thing that is borrowed, especially a sum of money

that is expected to be paid back with Interest.

• The act of giving money, property or other material

goods to a another party in exchange for future

repayment of the principal amount along with

interest or other finance charges is called loan.

• A loan may be for a specific, one-time amount or

can be available as open-ended credit up to a

specified ceiling amount.

• A secured loan is a loan in which the borrower

pledges some asset (e.g. a car or property) as collateral.

• Secured loans are loans that rely on an asset as

collateral for the loan.

• In the event of loan default, the lender can take

possession of the asset and use it to cover the loan.

• Interests rates for secured loans may be lower than

those for unsecured loans.

• The asset may need to be appraised before you can

borrow a secured loan.

• Unsecured loans don’t have asset for collateral. These

loans may be more difficult to get and have higher interest

rates.

• Unsecured loans rely solely on your credit history and your

income to qualify you for the loan.

• In case of default, the lender has to exhaust collection

options including debt collectors and lawsuit to recover the

loan.

• For example-

credit card debt

personal loans

bank overdrafts

credit facilities or lines of credit

1. Installment Loan

A one time loan which the

borrower must repay the

amount in a specified number

of equal payments.

2. Student Loans

An Installment Loan from the

government to help pay for college.

No payments until out of school!

Interest rates usually lower a bank’s.

People pay on these loans for a very

long time!

• A personal loan is typically issued for a specific amount

and can be used for various purposes at the discretion of

the borrower.

• A personal loan can be a secured loan or an unsecured

loan. A secured loan uses an asset — such as a house or

car — as collateral (or support).

• If the borrower defaults on the loan, the creditor can take

the asset.

• An unsecured loan does not require collateral and is

considered high risk. As such, it has a higher interest rate.

3. PERSONAL LOAN

4. VEHICLE LOAN

• Most people today need a loan when they buy a new or

used car. And the high cost of many cars means that

consumers spend years paying for their vehicles.

• Because a car loan is such a huge debt for most people,

it pays to understand it before entering into an

agreement.

• A car loan is a secured loan, which means the vehicle

serves as collateral on the debt.

• If you fail to make your payments, the lender can seize it

as payment.

• This is much safer for the lender than unsecured debt,

such as a credit card account, where the lender has only

the card-holder’s promise to pay

• The home loan is a loan advanced to a person to assist in

buying a house or condominium.

• Purchasing a house can be a valuable form of investment.

• However, it requires considerable thought and

careful financial planning before taking on such a big step.

• If owning a house is part of your financial goal, then you’ll

need to know whether you can afford from your income and

savings.

5. HOME LOAN

TYPES OF CREDIT CARDS

Low Balance Transfer

Credit Card

Security Bank Credit Card

0% Interest on Balance Transfers

from Other Credit Cards

Helps you lower the interest of your debt by moving it to

another credit card

with low interest rates

Cash back Credit Card

Citi Cashback Credit Card

Up to 6% Supermarket Rebates

Get rebates in dining, fuel, groceries,

medicine, travel, and other purchase categories which

range from 0.5% to 5% of

total amount spent

Rewards Credit Card

Standard Chartered Classic MasterCard

1 Point Earned per Php10.00 spent

Lets you redeem rewards by accumulating

points per purchase. The rewards can range

from free flights and gift certificates from

the bank’s retail partners

Shopping Credit Card

BDO Forever 21 MasterCard

10% off on purchases at

Forever21 stores

Get big savings with your shopping with 10% -

50% discounts through a co-branded credit

card with a store or organization .

Premium Credit Card

Standard Chartered Priority Banking Visa

Infinite

Complimentary access to over 600 airport

lounges in over 300 cities worldwide

Be first in line on credit card exclusive

discounts, select access to VIP areas

in establishments, and priority service

at airports, hotels, and resorts.