There are many different factors for banks charging different interest rates for different kinds of loans.
The most common basis for calculating interest rate is the duration of the loan and the second most influential is the risk factor involved. Other than these, factors such as the profile of the borrower, their income and earnings, personal wealth, credit history and so on can also effect the interest of the loan.
Usually, the longer the duration of the loan, the higher is the interest rate levied on it. The logic behind this principle is that as the years pass, the rate of inflation increases, thus decreasing the value of the loan itself. Hence, the interest rates for most long-term loans are high and short term loans are low.
Almost all banks check for risk factors associated with an individual or corporation before giving a loan. The risk factor refers to the probability of the loan not being paid bank in its entirety. Full Article…






As with the Olympic legacy (ugh), the proof of the pudding will be in the eating. Or in the gagging.
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