ECONOMICS

Detailed explanation-1: -Loan Term: The amount of time that the borrower has to repay the loan. Interest Rate: The rate at which the amount of money owed increases, usually expressed in terms of an annual percentage rate (APR). Loan Payments: The amount of money that must be paid every month or week in order to satisfy the terms of the loan.

Detailed explanation-2: -What is a Repayment Agreement? A repayment agreement is a legal document between a borrower and a lender that specifies the loan (or other owed amount) terms as well as the responsibilities of both parties.

Detailed explanation-3: -Promissory notes may also be referred to as an IOU, a loan agreement, or just a note. It’s a legal lending document that says the borrower promises to repay to the lender a certain amount of money in a certain time frame. This kind of document is legally enforceable and creates a legal obligation to repay the loan.

Detailed explanation-4: -This amount is known as the principal; the lender determines the interest on the other by use of some internal underwriting frameworks as well as simple and compound interest formulas.