Question

what do you understand by terms of credit,?​

Answer 1

Credit Refers to a card for money...

Answer 2

Terms of credit :

The terms and conditions agreed upon by the lender and the borrower during a credit arrangement.

Different terms of credit are :

→ Rate of Interest :

Extra amount paid to the lender over the principle borrowed.

→ Collateral :

Collateral against loans is an asset that the borrower owns, such as, land, building, vehicle, livestock, deposits with banks, etc. If the borrower fails to repay the loan, the lender has the right to sell this collateral to obtain payment.

→ Mode of repayment :

Manner in which the loan would be repaid (cash/cheque/money transfer/EMI ).

→ Documentation required :

Identity Cards, address proof, employment and salary records, that should be presented by the borrower for getting a loan.

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