BANKING AFFAIRS

Detailed explanation-1: -The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest or finance charges to the principal value which the borrower must repay in addition to the principal balance.

Detailed explanation-2: -A term loan provides borrowers with a lump sum of cash upfront in exchange for specific borrowing terms. Borrowers agree to pay their lenders a fixed amount over a certain repayment schedule with either a fixed or floating interest rate.

Detailed explanation-3: -Interest is the monetary charge for the privilege of borrowing money. Interest expense or revenue is often expressed as a dollar amount, while the interest rate used to calculate interest is typically expressed as an annual percentage rate (APR).

Detailed explanation-4: -The correct option is A. True. Interest is the extra amount/money paid by the borrower to the lender.

Detailed explanation-5: -Interest is the extra money paid by the borrower to the lender. JEE Main 2022 Question Paper Live Discussion.