Question

why are terms of credit required for a loan or credit​

Answer 1

☺ Hello friends ☺

The cost of credit is the additional amount , over and above the amount borrowed has to pay . Interest rates on loans to consumers , whether mortgages aur credit cards , are most commonly determined with reference to a credit score .

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Answer 2

Answer:

hey mate...

1. Every loan agreement specifies an interest rate which the borrower must pay to the lender along with the repayment of the principal addition, lenders may demand collateral against the loan.

2. Collateral is an asset that the borrower owns and uses this as a guarantee to a lender until the loan is repaid.

3. The interest rate, collateral and documentation requirement, and the mode of repayment together comprise what is called the terms of credit....

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