Introduction
 
Credit acts as a pillar to the modern economy, an integral part of economic development. It is used by large businesses estates to small industries, the government and individual citizens. People, who have funds, place them in a bank deposit for a certain period. The bank, on the other hand, acts as a borrower lends the money to other party on certain terms and conditions. 
 
Who should take this course?
 
This course is beneficial for students – who want to know how to take loan from a financial institution and the mode of payment after taking the loan for their study purpose, people – who want to take a loan in order to setup their business with easy instalments and for business men – who want to take huge amount of loan from banks in order to carry on their business transactions.
 
What are the benefits of the course?
 
After completing this course, you will be able to know:
 
- Types of Loan (Secured, unsecured, term loans, revolving credit)
- How to apply for the right loan for you?
 
Table of contents:
 
- Understanding loans (Introduction)
- Money SENSE core financial capabilities
- Why do people borrow?
- Features of term loans
- Term loans: Flat rate and monthly rest
- Term loans: Flat rate, discount and fixed
- Term loans: Fee and charges
- Features of revolving credit
- Notes: Modes of repayment
- Excel Demo: Flat rate interest, flat rate discount, fixed principle repayment, effective interest rate
 
Author bio:
 
This convenient guide has been designed and prepared by Alex Lum - who is currently working as a director at MoneySENSE-Singapore Polytechnic Institute for Financial Literacy, Christopher Tan – Information Technology manager at Singapore Polytechnic Institute For Financial Literacy and Peggy Chan PY – who has served eight years in the financial industry, helping people to get financial assistance from various financial institutions.