Question

Explain briefly the terms of Credit.

Answer 1

$\huge\underline\bold\red{AnsweR...}$

Four terms of credit are as listed below:

☞Interest rates: While borrowing or lending loans, rate of interest is decided by both the parties and is specified in the document.

------------------------------------------------------------------------

☞Collateral: It is an asset that the borrower owns like house, shop, land etc. It is against such assets as a guarantee that loan is given to the borrower.

-----------------------------------------------------------------------

☞Documentation required: The borrower before lending money check all the documents related to the employment record and income that is earned by the borrower.

------------------------------------------------------------------------

☞Mode of repayment: It is related to the ways and duration in which the loan can be repaid by the borrower. Long term loans can be repaid in annual, six monthly or monthly installments.

Explanation:

♡ₕₒₚₑ ᵢₜ ₘₐy ₕₑₗₚₛ ᵤ...♡

Answer 2

Answer:

Terms of credit comprise interest rate , collateral and documention requirements and the mode of repayment.