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Consumer and Real Estate Lending - Coggle Diagram

- - - - generally linked to bank accounts of the customers
        The balance is treated as a loan on which an agreed interest rate is charged.
    - - instalment loans or non-instalment loans.
      - • Periodic payment and Interest
      - Purchase for personal need
    - - Home loans are such a special class of consumer loans
        
        Owner-occupied home loans are generally pai
  - - - Character
        
        ablility: education, working place
        
        Purpose of loan
        
        Track record
        
        The integrity of the borrower.
        
        speding habits
      - capacity
        
        income
        
        Stability of work
        
        Stability of residence
        
        deposit
      - collateral
- - - - Value of the property equals the sum of all the cost to
        improve the land, deducts depreciation
      - Provides a near accurate estimate for newer properties
      - Drawbacks: does not account for market supply and
        demand, and consumer preferences
    - - Uses the rental-sale price ratio from comparable property
        to derive the price of the real estate in hand
      - The capitalization rate = 100 / price / annual net income
      - Easy to execute, often used to value commercial properties
    - - Easy to execute, specially accurate in case of
        bare lands
      - based on that of similar properties sold in recent
        time
      - Drawbacks: unavailable, incomparable properties;
        does not account for intangible values