BANKING AFFAIRS

Detailed explanation-1: -A guarantor is a financial term describing an individual who promises to pay a borrower’s debt in the event that the borrower defaults on their loan obligation. Guarantors pledge their own assets as collateral against the loans.

Detailed explanation-2: -debts. The noun debt refers to an obligation to pay for or do something. If you get arrested for stealing, serving time in jail is the way to repay your debt to society. Debt comes from the Latin word debitum, which means “thing owed.” Often, a debt is money that you must repay someone.

Detailed explanation-3: -Repayment is the act of paying back money previously borrowed from a lender. Typically, the return of funds happens through periodic payments, which include both principal and interest.

Detailed explanation-4: -Interest-The price that people pay to borrow money. When people make loan payments, interest is a part of the payment. Interest Rate-The cost of borrowing money expressed as a percentage of the amount borrowed (principal). Typically, low-risk borrowers with good credit scores pay the lowest interest rates.

Detailed explanation-5: -A promissory note is a financial instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.