A loan is usually given for a specific duration of time and needs to be completely repaid by a specified date. The borrower repays the loan in cash, by cheque or by card in instalments, or as a one-time repayment, as specified in the mode of repayment. What are these specifics called?

Collateral

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Rules

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Methods

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Terms of credit

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Terms of credit
Terms of credit consist of the amount lent, the rate of interest, duration, and the mode of repayment.

Suggest Corrections

Similar questions

Q. Process of loan repayment by installment payments is classified as

Q. Loan is the money you receive from a bank or financial institution in exchange for a commitment to repay the borrowed amount with interest.

Q. A farmer took a loan for agriculture, but unfortunately could not repay the loan. So, the farmer took another loan to repay the previous loan. What is this condition called?

Q. When people are unable to repay a loan, they take another loan to repay the orignal loan. This vicious cycle is known as ___________.

A borrower comes into the bank and pays off 100 Rupees of his loan. This was a cash payment by the borrower to the bank. What will the bank do because of this loan repayment?

Join BYJU'S Learning Program

A loan is usually given for a specific duration of time and needs to be completely repaid by a specified date. The borrower repays the loan in cash, by cheque or by card in instalments, or as a one-time repayment, as specified in the mode of repayment. What are these specifics called?

The correct option is D Terms of creditTerms of credit consist of the amount lent, the rate of interest, duration, and the mode of repayment.

The correct option is D Terms of credit
Terms of credit consist of the amount lent, the rate of interest, duration, and the mode of repayment.