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There are many sources of consumer loans such as banks, finance companies, savings and loan associations, credit unions, life insurance companies, even friends and family.

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There are many sources of consumer loans such as banks, finance companies, savings and loan associations, credit unions, life insurance companies, even friends and family. The best place to obtain a loan often depends on the purpose of the loan and usually the creditworthiness of the applicant. Identify the source of a consumer loan on the left that best fits a description on the right. There is only one possible answer for each loan. Source of Loan Answer Description Commercial banks These are nonprofit organizations whose loan interest A. rates are relatively low. Consumer finance companies These institutions are known as small loan companies B. with most loans for $5,000 or less. These institutions generally offer higher interest rates Credit unions C than many other types of institutions because the vendor of the item being financed arranges the financing and must be paid for that service Loans from these institutions are in high demand but D Savings and loan associations given only to those who are good credit risks. These institutions usually carry variable interest rates Sales finance companies E. and need not be paid back These institutions mainly make mortgage loans. Life insurance companies

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