Respuesta :
The lender views the borrower as lower in risk.
What's a loan?
- In finance, a loan is the lending of plutocrats by one or further individualities, associations, or other realities to other individualities, associations, etc.
- The philanthropist incurs a debt and is generally liable to pay interest on that debt until it's repaid as well as to repay the top quantum espoused.
- The document evidencing the debt(e.g., a promissory note) will typically specify, among other effects, the top quantum of plutocrat espoused, the interest rate the lender is charging, and the date of prepayment.
- A loan entails the redistribution of the subject asset( s) for some time, between the lender and the borrower.
What are the benefits of a loan?
- Inflexibility A bank loan allows one to repay as per convenience as long as the installments are regular and timely, Unlike an overdraft where all the credit is subtracted in go.
- Or a consumer credit card where the maximum limit can not be utilized in one go.
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