Loan

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/loan

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the financial instrument classification?A debt-based financial contract between a lender and a borrower
2. What is the historical development milestones?Ancient credit systems, medieval banking, Industrial Revolution capital needs, modern global markets

Amortization: The process of paying off a debt over time through regular installments of principal and interest.
Collateral: An asset pledged by a borrower to a lender to secure a loan, which can be seized if the borrower defaults.
Creditworthiness: An assessment of a borrower's ability and likelihood to repay a loan, often indicated by a credit score.
Default: The failure of a borrower to make scheduled payments on a loan as agreed.