Question

Explain all the terms of credit.

Answer 1

There you go buddy:

The four terms of credit are :

1 Interest rate- The borrower has to pay a sum of money as interest along with the principal amount.

2.Collateral- It is an asset that the borrower owns and uses this as guarantee to the lender until the loan is repaid.

3. Documentation- Proper documents of borrowing with all the terms and conditions must be submitted.

4. Mode of repayment - The mode through which the borrower will repay the loan must be clearly mentioned.

Answer 2

Answer:

Interest rate, collateral ,documentation requirements and the mode of repayment together compromise terms of credit