Question

What is terms of credit. Write briefly​

Answer 1

Terms of credit comprise interest rate, collateral and documentation requirement, and the mode of repayment. . The terms of credit vary substantially from one credit arrangement to another. They may vary depending on the nature of the lender and the borrower.

Answer 2

Answer:

Credit means a loan, an agreement in which the lender (creditor) 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.