ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A personal loan tenure is the amount of time that you take to repay the loan. Your personal loan tenure is directly proportional to your interest cost; the longer you take to repay the loan, the more interest you need to pay.

Detailed explanation-2: -A loan term is the length of time it will take for a loan to be completely paid off when the borrower is making regular payments. The time it takes to eliminate the debt is a loan’s term.

Detailed explanation-3: -Grace period is a feature provided by banks or insurance companies so that customers can delay payment for a certain period of time after the due date (after the payment deadline).

Detailed explanation-4: -There are three main classification found in Term Loans: short-term term loan, intermediate term loan, and long-term term loan.

Detailed explanation-5: -Long-term loans: These loans last anywhere between three to 25 years. They use company assets as collateral and require monthly or quarterly payments from profits or cash flow.