Loans (Junior Cert Business Studies): Flashcards
📚Flashcards
Practise the cards
15 cards from this deck
ShowHide
Practise the cards
15 cards from this deck
Loan definition
Loan definition
Money borrowed from institution, repaid in regular instalments with interest
Mid-term loan
Mid-term loan
Loan repaid over 1-5 years with interest
Long-term loan
Long-term loan
Loan repaid over more than 5 years with interest
Mortgage
Mortgage
Long-term loan for property, typically 20-30 years
Collateral
Collateral
Valuable asset pledged to lender if borrower can't repay
Guarantor
Guarantor
Person who agrees to repay loan if borrower cannot
Loan term
Loan term
The repayment period of a loan
APR meaning
APR meaning
Annual Percentage Rate - standardised yearly interest rate
Purpose of APR
Purpose of APR
Allows fair comparison between different lenders
Cost of loan formula
Cost of loan formula
Amount repaid minus amount borrowed
Loan cooling-off period
Loan cooling-off period
14 days to cancel loan without penalty
Mortgage collateral
Mortgage collateral
The property itself serves as security
ICB role
ICB role
Irish Credit Bureau - reviews credit rating for lenders
CCR (Central Credit Register)
CCR (Central Credit Register)
Provides free credit reports for loans €500+
Key borrower responsibility
Key borrower responsibility
Make all agreed payments on time and repay in full