Money is easily one of the most important tools in life. This is considering that it is the major means of exchange with every other product and service we need. Hence, people divide their incomeinto different aspects including what they spend, what they save, and what they invest. Part of their investments often includes giving out loans to people who want to borrow money and collecting back some interests in the process.
It is majorly financial institutions that carry out this type of business. However, there are a lot of individuals and small groups that have also discovered how viable the business is and have also invested their money in it. The idea is to give their customers a principal that they are expected to pay back with some interest before or at the end of the tenure of the loan. Credit rates are used to calculate the interest …Read More