ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The granting of a loan and the creation of debt; any form of deferred payment. An obligation of repayment owed by one part (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest.

Detailed explanation-2: -The most common forms of debt are loans, including mortgages, auto loans, and personal loans, as well as credit cards. Under the terms of a most loans, the borrower receives a set amount of money, which they must repay in full by a certain date, which may be months or years in the future.

Detailed explanation-3: -Credit is money you borrow from a bank or financial institution. The amount you borrow is debt. You will need to pay back your debt, usually with interest and fees on top.

Detailed explanation-4: -A loan is money borrowed from a lender. On the other hand, debt is the money raised through the issuance of bonds or debentures. A loan is money one borrows from a lender. The lender can be a bank or a financial institution.

Detailed explanation-5: -Home loan. Loan against property (LAP) Loans against insurance policies. Gold loans.