Question

While taking a loan, borrowers look for easy term of credit.this means ___ interest _____ conditions for repayment,_______collayeral and documentation

Answer 1

Answer:

While taking a loan, borrowers look for easy terms of credit. This means low interest rate, easy condition; for repayment, less collateral and documentation.

Answer 2

While taking a loan, borrowers look for an easy term of credit. This means low interest, fewer conditions for repayment, less collateral, and documentation.

• Low interest here means that the borrowers always try looking for a low-interest rate charged on their loan by the bank. For a local bank, the personal loans' interest rate might be between 10.50% to 24% p.a.
• Fewer conditions here mean the loan terms associated with the loan decided by the bank. These are generally based on the annual income of the borrower, any other loans taken from other sources, assets of the borrower, etc. The loan terms can be lenient based on the borrower's credit history.
• Less collateral and documentation here means that the documents of the borrower's assets are taken by the bank as the security of repayment of the loan.