Question

What is meant by terms of Credit? Explain with example.

Answer 1

Credit is an agreement whereby a financial institution agrees to lend a borrower a maximum amount of money over a given time period. Interest is typically charged on the outstanding balance. 
Example :- 1. Interest rate
2. Collateral
3. Documentation require
4. Mode of repayment

Answer 2

Credit refers to a loan, an agreement in which the lender supplies the borrower with money, goods or services which is to be returned in future. ... Terms of credit apart from the rate of interest, collateral also includes documentation, mode of repayment.