Chapter 3 · Question 4
What are terms of credit?
Answer
Direct Answer
Terms of credit include the interest rate, collateral, documentation, mode of repayment, and loan duration. These terms decide how costly or accessible a loan is for the borrower. Poor borrowers often face difficulty because they lack collateral or formal documents.
Simple Explanation
Terms of credit include the interest rate, collateral, documentation, mode of repayment, and loan duration. These terms decide how costly or accessible a loan is for the borrower. Poor borrowers often face difficulty because they lack collateral or formal documents.
Exam-Ready Structure
Terms of credit include the interest rate, collateral, documentation, mode of repayment, and loan duration. These terms decide how costly or accessible a loan is for the borrower. Poor borrowers often face difficulty because they lack collateral or formal documents.
Key Points
- Terms of credit include the interest rate, collateral, documentation, mode of repayment, and loan duration.
- These terms decide how costly or accessible a loan is for the borrower.
- Poor borrowers often face difficulty because they lack collateral or formal documents.