Question

1. Can poor people ask for a credit from the bank? If yes, state how; If no, state why.
2. Why do the banks offer higher interest rate for amortizing payment than for payment on principal balance?

Answer 1

Answer:

I donot know what is the answer

Answer 2

Credit policy for poor people

Explanation:

Yes, Poor people can ask for credit from bank. Poor people are given certain credit facilities and schemes exclusively reserved for poor people. Poor people are benefited by such credits.

The banks offer higher interest rate for amortizing payment than for payment on principal balance because  payment made more than  the interest amount reduces the principal and then lowers the balance amount on which the interest can be calculated. The principal amount of the payment increases so  the interest amount of an amortized loan also decreases.

To know more:

Can poor people ask for a credit from the bank? If yes, state how; If no, state why?

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