USA HISTORY

Detailed explanation-1: -Credit is a relationship between a borrower and a lender. The borrower borrows money from the lendor. The borrower pays back the money at a later date along with interest. Most people still think of credit as an agreement to buy something or get a service with the promise to pay for it later.

Detailed explanation-2: -Banks offer a variety of ways to borrow money including mortgage products, personal loans, auto loans, and construction loans, and also offer opportunities to refinance an existing loan at a more favorable rate.

Detailed explanation-3: -Now, either can be in the form of Capital investment or it can be borrowed from the outsiders. Capital investment can be done by issuing equity shares and whereas money can be borrowed from outsiders’ i.e. external sources can be through issuing debentures, bonds, bank loans, External Commercial Borrowings, etc.

Detailed explanation-4: -Borrowing to invest, also known as gearing or leverage, is a risky business. While you get bigger returns when markets go up, it leads to larger losses when markets fall.

Detailed explanation-5: -A mortgage loan is a very common type of loan, used by many individuals to purchase residential or commercial property. The lender, usually a financial institution, is given security – a lien on the title to the property – until the mortgage is paid off in full.