ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Interest is one of the biggest expenses of taking out a loan. The lower your interest rate, the less extra money you’ll pay on top of what you borrowed. While it’s not always possible to lower your interest rate, some strategies might help you save money on your loan over time.

Detailed explanation-2: -In other words, interest is the price you pay for borrowing money from a lender. That means, when paying back the loan, you’ll pay the amount you borrowed plus an additional sum-which is the interest. Lenders take different approaches to charge interest.

Detailed explanation-3: -Repayment Fee means the fee payable by the Participating Lenders to PledgeMe of 1% of all Contributions that are repaid under a Loan, including Scheduled Repayments, Voluntary Repayments and late repayments.

Detailed explanation-4: -Interest payments are the cost of borrowing money. The borrower makes these payments in addition to paying back the principal on a loan. If you lend money with interest, the interest payment is the amount you are paid over and above the principal amount you lent.