Definition
Loans are given out to people via the bank, under few conditions. Those conditions are known as terms of credit.
Terms of Credit
- Collateral: Any proof of property that the borrower possesses and placed as a security to the bank (Guarantee)
- Documents
- Interest Rate by which the borrower will repay.
- Mode of Repayment
Do bank give out loans to everyone?
No they don’t, the borrower must qualify all the terms of credit
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Flashcards
What are terms of credit? ? Loans are given out to people via the bank, under few conditions. Those conditions are known as terms of credit.
- Collateral: Any proof of property that the borrower possesses and placed as a security to the bank (Guarantee)
- Documents
- Interest Rate by which the borrower will repay.
- Mode of Repayment