Loan Proposals

Loan Proposals
BY EISEN ENOMIS
Introduction
Hello, my name is Eisen Enomis, and I am a marketing agent of DaBank Philippines. This
presentation was made for the sharing of our loan proposal fo the victims of Super Typhoon
Rolly. We will be presenting 4 types of loan deals which are:
◦ Salary Loan
◦ Housing Loan
◦ Car Loan
◦ Personal Loan
For this proposal, we have also asked for the aid of some banks such as:
EastWest Bank
Metrobank
BDO
We will be presenting each loan through simple and compound interest.
Simple Interest
SALARY LOAN:
For our salary loan, we carefully decided on the value of Php 34,000 as our principal amount.
This is a fixed amount due to the limit of our flexibility. Our interest rate would be 12.27% and a
term of 3 years. We shall now calculate for the interest:
P= Php 34,000
r= 12.27%
t= 3 years
I=Prt
=(34,000)(0.1227)(3)
=(34,000)(0.3681)
I=12,515.4
Therefore, our interest for the Salary Loan is Php 12,515.4.

Simple Interest
HOUSING LOAN:
In the Housing Loan, assisted by EastWest Bank, we took in mind all he devastated homes of
the victims. Thus, we have decided to give an interest of Php 33,000 with a rate of 5.50% to be
paid after the term of 4 years. The amount we would be able to lend is:
I= Php 33,000
r= 5.50%
t= 4 years
P=I/rt
=33,000/(0.0550)(6)
=33,000/0.33
P=100,000
Therefore, the principal amount is Php 100,000.

Simple Interest
CAR LOAN:
For all the broken vehicles due to flooding and strong rains, we have given a Car Loan with the
help of Metrobank Car Loan. The principal amount to be lent is Php 50,000 to be used for one
year. After the term, we would receive an interest of Php 2,635. Therefore, the interest rate
would be:
P= Php 50,000
t= 1 year
I= Php 2,635
r=I/Pt
=2,635/(50,000)(1)
=2,635/50,000
P=0.0527
Therefore, the rate is 5.27%.
Simple Interest
PERSONAL LOAN:
We have devised a Personal Loan with BDO’s help for the victims with high debts. They would
receive an amount of Php 25,000. The interest would be Php 1,875 with a rate of
15%.Therefore, the length of term would be:
P= Php 25,000
r= 15%
I= Php 1,875
t=I/Pr
=1,875/(25,000)(0.15)
=1,875/3,750
t=0.5
Therefore, the term is 0.5 years or 6 months.
Compound Interest
We will now be presenting our loan proposals in a
compound interest. Results may vary from the simple
interest.
Compound Interest
SALARY LOAN:
For our salary loan, we have an amount of Php 34,000 for 3 years with an annual rate of
12.27% compounded monthly. Therefore, our compound interest would be:
P= Php 34,000
r= 12.27%
t= 3 years
m= 12
Therefore, the compound interest is Php 14,960.

Compound Interest
HOUSING LOAN:
For the housing loan, we have a rate of 5.50% compounded annually. The amount is Php
100,000 to be used for 4 years. Therefore, our compound interest would be:
P= Php 100,000
r= 5.50%
t= 4 years
m= 1

Compound Interest
CAR LOAN:
In our car loan, we will be lending an amount of Php 50,000 for 1 year with an annual rate of
5.27% compounded semi-annually. Therfore, the compound interest would be:
P= Php 50,000
r= 5.27%
t= 1 year
m= 2
Therefore, the compound interest is Php 29,821.61.

Compound Interest
PERSONAL LOAN:
In the personal loan, an amount of Php 25,000 will be lent with an annual rate of 15%
compounded annually. The term had been changed for one year due to resource difficulties.
Therefore, the compound interest would be:
P= Php 25,000
r= 15%
t= 1 year
m=1

Summary
SIMPLE INTEREST
Type of Loan Principal Amount Interest Rate Length of Term Interest
Salary Php 34,000 12.27% 3 years Php 12,515.4
Housing Php 100,000 5.5% 4 years Php 33,000
Car Php 50,000 5.27% 1 year Php 2,635
Personal Php 25,000 5% 6 months Php 1,875

Summary
Compound INTEREST
Type of Principal Interest Length of Compound Frequency Interest

Loan Amount Rate Term Amount of
Conversion
Salary Php 34,000 12.27% 3 years Php 48,960 monthly Php 14,960
Housing Php 5.5% 4 years Php annually Php 24,000

100,000 124,000
Car Php 50,000 5.27% 1 year Php semi- Php
79,821.61 annually 29,821.61
Personal Php 25,000 15% 1 year Php 28,750 annually Php 3,750
Conclusion
MANAGER’S CHOICE CLIENT’S CHOICE
As a manager, I would choose the loan As a client, I would choose the loan proposals
proposals with a compound interest. In order with a simple interest. The clients would be
to keep the bank from being bankrupt, we lent a reasonable amount enough to greatly
would have to choose a loan with a high risk- assist them. They would also have a lower
high return statement. I understand that the interest to pay at the end of the term.
given term for the loan is enough to
accumulate the payment for the interest. The
interest rate is enough for both the bank and
its clients.

Loan Proposals

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Therefore, our interest for the Salary Loan is Php 12,515.4.

Therefore, the principal amount is Php 100,000.

Therefore, the compound interest is Php 14,960.

Therefore, the compound interest is Php 24,000.

Therefore, the compound interest is Php 29,821.61.

Therefore, the compound interest is Php 3,750.

Type of Loan Principal Amount Interest Rate Length of Term Interest

Salary Php 34,000 12.27% 3 years Php 12,515.4

Housing Php 100,000 5.5% 4 years Php 33,000

Car Php 50,000 5.27% 1 year Php 2,635

Personal Php 25,000 5% 6 months Php 1,875

Type of Principal Interest Length of Compound Frequency Interest

Housing Php 5.5% 4 years Php annually Php 24,000

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