Purpose of the session:
What is behind approving loans

Description of the Activity:

• Students role-play loan takers and bankers
• What questions to ask?
• Who will get the loan?

Materials and resources required

• Name cards
• Descriptions

James, age 32

• borrow 100.000 €, for 30 years
• married with 1 child, buying a 1920 house that needs repair
• MBA and a job at the energy company, making 75.000 € a year
• saved 20.000 €
• wife unemployed
• car worth 15.000 €, no loan
• he and his wife still owe 60.000 € in student loans

Amanda, age 22

• borrow 25.000 € for car loan
• she has an old car with more than 250.000 km
• has a degree in marketing
• starting work as a sales representative earning 30.000 € a year
• still owes 30.000 € of student loans
• no house, no assets
• single

Diana, age 29

• borrow 75.000 € for a 10-year loan to start a fashion company
• has worked in clothing before and wants her own label
• degree in fashion merchandising
• she now earns 35.000 € a year
• spends most of it
• no house, old car
• no savings
• no loans
• single

Michael, age 18

• borrow 100.000 € for a 25-year student loan to attend a private arts college
• worked part-time in a restaurant, has no savings, no car
• single
• plans to continue to work while studying

Trevor, age 35

• borrow 75.000 € loan to remodel kitchen and install new windows
• house is valued at 250.000 €, still owes 220.000 € mortgage
• works as a restaurant manager, earning 45.000 € a year, his wife earns 15.000 € a year
• two children
• they owe 30.000 € on two car loans and 25.000 € on student loans
• she lost a job in early 20s and defaulted on a loan
• have 20.000 € savings