explain any four terms of credit with EXAMPLES
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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.
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