Terms of Credit

Q. Esha lends money to Catherine. After a year, Esha demands the repayment of the loan. However, Catherine denies borrowing the loan. How should Esha defend her claim and collect the money loaned?

1. Using the terms of credit
2. Using a witness
3. Using violence
4. Seeking friends

Q. The interest rate, mode of repayment, collateral, and documentation comprise the ________________.

1. loan documents
2. terms of debit
3. bank agreement
4. terms of credit

Q. Sunita took a loan with her house as the collateral. When will the house be free from the bond?

1. After the repayment of the loan
2. After the completion of education
3. She will never get back the ownership of the collateral
4. She will get the ownership whenever she desires

Q. The terms of credits are similar for all credit transactions.

1. True
2. False

Q. Identify the items mentioned in the terms of credit.

1. Name
2. Loan amount
3. Rate of interest
4. Identity proof
5. Bank statement
6. Collateral
7. Repayment mode
8. Marksheet