Login

explain any four terms of credit with examples??

The four terms of credit are : 

1 Interest rate- The borrower has to pay a sum of money as interest along with the principal amount.

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

3. Documentation- Proper documents of borrowing with all the terms and conditions must be submitted.

 4. Mode of repayment - The mode through which the borrower will repay the loan must be clearly mentioned.

  • 80
View Full Answer

Balance : The payments left to go on your contract.

Collateral : Whatever the creditor has a lien or mortgage on - usually your car or house. NOT your furniture appliances, one radio or one television UNLESS the debt is for buying any of these things.

Collection Agency : A company that collects debts for other people or companies.

Consumer : A person who uses credit for personal, family or household purposes.

Creditor : The person or company you owe money to.

Debtor : The person who owes the money.

Refinance : Renew the contract before you have paid it out.

Repossess : When a creditor takes the property his lien is on - with or without a court order.

 

Hope this helps u...

  • -2
What are you looking for?