Louise acquired an insurance policy for her car. Now she needs to call the banks customer service line because she doesnt remember how much money she will pay monthly. She needs to know the .....

FINANCIAL TERMINOLOGY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Louise acquired an insurance policy for her car. Now she needs to call the bank’s customer service line because she doesn’t remember how much money she will pay monthly. She needs to know the ____

A	POS (point of sale)
B	prepaid card
C	insurance policy
D	insurance fee

Explanation:

Detailed explanation-1: -Vehicle Loan – Meaning Typically, the lender loans the money (making a direct payment to the dealer on the buyer’s behalf) while the buyer must repay the loan in Equated Monthly Instalments (EMIs) over a specific tenure at a specific interest rate.

Detailed explanation-2: -Before you even take a car loan you need to arrange the down payment. Most banks give you 80% to 90% of the car’s on-road price as a loan. This means you need to pay 10% to 20% from your own pocket at the time of purchasing the car. So if you take a loan for a car with an on-road price of Rs.

Detailed explanation-3: -Recovery agents will be sent This mostly happens when one has defaulted for over 90 days which is categorised as a major default. The lenders issue a 60-day notice before tagging the loan account as a Non-Performing Asset. It is ideal to avoid this situation.

There is 1 question to complete.

ECONOMICS

COST ACCOUNTING

FINANCIAL TERMINOLOGY