OneSmartClick.Com English Fluency The Unforgettable Loan

The Unforgettable Loan

Word List:

  • Loan
  • Interest
  • Collateral
  • Repayment
  • Due date
  • Defaulter
  • Principal
  • Amortization
  • Refinancing
  • Escrow


The sun was setting in the small town of Millville, and Loan officer Jack was about to head home after a long day at the bank. He had been dealing with various customers all day, giving out loans, collecting payments, and calculating the Interest rates. But, one customer stood out from the rest. Mrs. Smith, a middle-aged woman with teary eyes, was there to renew her loan. She was a single mother of two and had taken a loan a few years back to pay for her children’s education.

The loan had been approved on the condition that she would put her house as Collateral. Mrs. Smith had always made the Repayment on time, but due to some unexpected circumstances, she had fallen behind. Jack knew that she was a good person, but he also knew that the bank’s rules were strict, and he couldn’t renew the loan without proper documentation.

The Due date was fast approaching, and Jack had no choice but to inform Mrs. Smith that she was now a Defaulter. He felt terrible for her, but he also knew that he had a job to do. He went back to his office to do some calculations and came up with a plan. He would renew the loan, but this time, the Principal amount would be lower, and the interest rate would be higher.

Mrs. Smith was overjoyed at Jack’s proposal and signed the papers, agreeing to the new terms. Jack explained the Amortization schedule to her, and she understood that it would take her longer to pay off the loan this time. But, she was grateful for the opportunity to keep her house and provide for her children.

A few years passed, and Mrs. Smith had made all the payments on time. She was proud of herself for not being a Defaulter anymore. She had also managed to save up some money, and she approached Jack to see if she could Refinancing the loan. Jack was happy to help, and he worked out a new amortization schedule for her, with a lower interest rate.

The day finally came when Mrs. Smith had made the last payment. Jack was there to witness her joy as she received the Escrow payment. He felt proud of her and happy for her. She hugged him and thanked him for giving her the opportunity to keep her house and provide for her children.

From that day on, Mrs. Smith and Jack remained friends, and Jack would always remember her as the customer who taught him the importance of being understanding and compassionate.


LoanA sum of money that is borrowed, usually with interestHome loan, Personal loan, Business loan
InterestThe cost of borrowing moneyInterest rate, Interest payment, Interest-only loan
CollateralSomething of value that is given to secure a loanProperty collateral, Asset collateral, Vehicle collateral
RepaymentThe act of paying back a loanLoan repayment, Monthly repayment, Early repayment
Due dateThe date by which a payment or loan must be paidLoan due date, Payment due date, Missed due date
DefaulterA person who fails to repay a loanLoan defaulter, Loan default, Credit default

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