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Sources of Credit
1. Private Individuals individual money lenders who loan surplus income to those
in immediate need of cash. Do not require collateral. Often called as loan sharks
because they prescribe rate of 5/6 or over and above what the law provides.
2. Retail Stores offers merchandise form of credit.
- offers book account (palista) for customers of the stores and collection
period is during paydays of the month.
3. Pawnshops extend loans in exchange for a collateral, a pawn.
- pawn acceptable are personal property or movable assets
4. Savings and mortgage banks any corporation organized for the purpose of
accumulating the savings of depositors and investing them, together with its capital,
inreadily market bonds and debt securities.
5. Mutual savings banks they sell interest bearing savings deposits to the public
and acquire assets largely in the form of urban residential mortgage.
6. Savings and loans association organized to obtain funds for home construction
and majority of their savings are placed in home mortgage.
7. Credit union mutual institutions whose membership have some common bond,
such as employment in the same company.
8. Insurance Companies services offered to the public is financial protection
against lifes various misfortunes.
9. Pension Funds the procedure for pension fund is reverse of that for insurance
companies. The person who lives the longest beyond retirement receives the highest
return in investment, through the periodic pension checks he receives.
10. Bond and Money Market Funds companies which accept savings and place
them in a pool of investments that allows diversifications of assets.
11. Sales finance companies includes sales and personal finance companies which
make loans to individuals for the purpose of buying automobiles.
12. Banks commercial banks, savings banks, rural banks, development and
investment banks.