Banks and Loans

My friend offered the bank his house as .... when he needed a loan.

• collateral

• debt

• term

• tenure

The bank will take possession of your car if you .... your car loan.

• pay off

• default on

• endorse

• compute

The amount of money that the lender lends to the borrower is called ....

• principal

• tenure

• default

• collateral

The three elements of loan in credit rating that can be offered to the customer by the credit dept. are ....

• amount

• type

• term

• collateral

Loans for buying cars are called ....

• commercial loans

• personal loans

• auto loans

• loan application

To make sure if the loan applicant always paid back the loans in the past, the bank will check the customer's....

• credit file

• credit rating

• charge account

• charge card

The first thing that the customer needs to do to take a loan is ....

• fill out the loan application

• compute the interest payments on the principal

• check the customer's information in the credit file

• decide tenure of the loan

The principal that banks lend to businesses is ....

• auto loans

• commercial loans

• personal loans

• application loans

The bank adds the interest to the .... to calculate the monthly payment of your loan.

• principal

• tenure

• charge account

• credit file

A person has a lot of .... if he owes money to a lot of people.

• debts

• credits

• loans

• principals