Question

Loans which have to be paid after certain fixed time periods and whose interest payments are to be made regularly till the loans are finally paid off are called

• A. Interest servicing burden
• B. Principal servicing burden
• C. Debt servicing burden
• D. Loan servicing burden

Answer 1

The correct option is C

Debt servicing burden

Both internal and external loans which have to be paid after certain fixed time periods, and their interest payments are made to be regularly till the loans are finally paid off, are known as debt servicing burden.