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What are the terms of credit?

Credit (loan) refers to an agreement in which the lender supplies the borrower 
with money, goods or services in return for the promise of future payment. The 
terms of credit are the following: 
i. Interest rate: Formal sector demands less rate of interest compared to informal 
sector. At present, they demand 8 to 12 % interest rate. 
ii. Collateral and documentation requirement: It refers to the security against the loan 
demanded and kept by the lender until the loan is paid back. It can be gold or 
documents of properties or other certificates attached with the application. 
iii. The mode of repayment: The borrower should pay back the interest and the 
principal amount weekly or monthly by cash or cheques as decided at the time of 
making agreements. 
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collateral-something which the borrower gives as a guarantee to the lender

documents-involving id cards,adress proof etc

means of repayment

interest rate

hope it helps

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

2.Collateral- It is an asset that the borrower owns and uses this as aguarentee 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.

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 Terms of CREDIT are:

 Mode of repayment

 Collateral security.

Intrest rate.

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Terms of credit are :

1.Colateral security : This means the borrower should have some property like land , vehicle , house e.t.c .and if the borrower did not pay his amount in time then the bank has the right to take the things which are presented as colllateral security.

2.Mode of repayment : The borrower should pay the credit taken only in the form of money but not any other form such as check , credit card e.t.c.

3.Interest rate : The bank from which the borrower has taken his loan has a fixed rate of interest and the borrower should also pay the interest with the amount of loan taken.

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Hi,

The four terms of credit are :

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

2.Collateral- It is an asset that the borrower owns and uses this as aguarentee 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.

Hope it helps........

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Credit (loan) refers to an agreement in which the lender supplies the borrower with money or services, in return for the promise of future payment.The terms of credit are the following:-​
  • Interest rate
  • collateral 
  • documentation
  • mode of payment
  • duration of loan
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thnx...
 
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Terms of credit are as follows:

  1. Interest rates: While borrowing or lending loans, rate of interest is decided by both the parties and is specified in the document.
  2. Collateral: It is an asset that the borrower owns like house, shop, land etc. It is against such assets as a guarantee that loan is given to the borrower. The borrower uses assets as a guarantee to a lender until the loan is repaid.
  3. Documentation required: The borrower before lending money check all the documents related to the employment record and income that is earned by the borrower.
  4. Mode of repayment: It is related to the ways and duration in which the loan can be repaid by the borrower. 
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Credit terms or terms of credit is the agreement between a seller and buyer that lists the timing and amount of payments the buyer will make in the future. In other words, this is the contract that describes the specific details of the seller’s payment requirements that the buyer must meet into order to purchase goods on account.
Most companies have credit policies set up with vendors or customers, so purchases can be made on account. These credit purchases help speed up commerce and increase sales because it allows customers to purchase items before they actually have the funds to buy them.
Terms of credit are-
  1. Interest rates: While borrowing or lending loans, rate of interest is decided by both the parties and is specified in the document.
  2. Collateral: It is an assent that borrower owns like a house, shop, land etc. It is against such assets as a guarantee that loan is given to the borrower. The borrower uses assets as a guarantee to a lender until the loan is repaid.
  3. Documentation required: The borrower before lending money check all documents related to the employment record and income earned by the borrower.
  4. Mode of Repayment: It is related to the ways and duration in which the loans can be repaid by the borrower.
  5. Term of loan: A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. 
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standard or negotiated terms (offered by a seller to a buyer) that control
1.the monthly and total credit amount 
2.maximum time allowed for repayment
3.discount for cash or early payment
4.the amount or rate of late payment penalty
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Terms of credit are as follows:

  1. Interest rates: While borrowing or lending loans, rate of interest is decided by both the parties and is specified in the document.
  2. Collateral: It is an asset that the borrower owns like house, shop, land etc. It is against such assets as a guarantee that loan is given to the borrower. The borrower uses assets as a guarantee to a lender until the loan is repaid.
  3. Documentation required: The borrower before lending money check all the documents related to the employment record and income that is earned by the borrower.
  4. Mode of repayment: It is related to the ways and duration in which the loan can be repaid by the borrower. 
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What are the advantages of credit
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There are 4 terms pf credit-
1) collateral
2) interest rate
3) documentation requirement
4)mode of repayment
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what is time
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bananaaaa
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The four terms of credit are : 1. Interest rate- The borrower has to pay a sum of money as interest along with the prinicipal amout. 2.Collateral- It is an asset that the borrower owns and uses this as aguarentee 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. Like If It Helps 👍
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1 Interest rate- The borrower has to pay a sum of money as interest along with the prinicipal amout. 2.Collateral- It is an asset that the borrower owns and uses this as aguarentee 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.
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There are 4 different terms of credit , they are : * Collateral * Documentation * Mode of repayment * Interest rate.
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Credit is a contractual agreement in which a borrower recieves something of value now and agrees to repay the lender at some date in the future, generally with interest. Credit also refers to an accounting entry that either decrease assets or increase liabilities and equity on the company's balance sheet. Credit increase net income
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1. Interest Rate
2. Collateral
3. Documentation
4. Mode of payment
5. Duration of loan
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Interest rate documentation requirement and collateral and the mode of repayment together comprise is known as terms of credit .The terms of credit vary substantially from one credit arrangement to another.They may vary based on the nature of the borrower and the lender.
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Terms of credit:
1. Documentation
2.Collateral
3.Rate of interest
4.Mode of repayment
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Every loan agreement specific an interest rate which the borrows must pay to the lenders along with repayment of the principal. In addition, lenders may demand collateral [ security ] against loans. Collateral is an asset that the borrower owns [ such as land, building , vehicle, livestock,deposits with bank] and uses this as  a guarantee to a lender until the loan is repaid.
 
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Okok
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