The interest rate are different for financial institutions in comparison to general borrower because __________________.
The interest rate are different for financial institutions in comparison to general borrower because __________________.
The correct option is B Both a & c
Rate of
interest is the rate charged on the loans offered by the commercial banks or financial institutions or general borrower to the people with or without any collateral depending on the loan amount. The interest rates are different for financial institutions in comparison to a general borrower because the financial institutions are more credit-worthy than the general borrower. So, they charge less interest on the loan offered and the average term for which loan has been taken by financial institutions is shorter in comparison with the general borrower which results in a lower rate of interest in a financial institution.
Rate of interest is the rate charged on the loans offered by the commercial banks or financial institutions or general borrower to the people with or without any collateral depending on the loan amount. The interest rates are different for financial institutions in comparison to a general borrower because the financial institutions are more credit-worthy than the general borrower. So, they charge less interest on the loan offered and the average term for which loan has been taken by financial institutions is shorter in comparison with the general borrower which results in a lower rate of interest in a financial institution.
