Interest rate

 

Meaning of the word: Interest rate

The interest rate is a percentage increase of the debt for a period. The interest rate is usually fixed for one year. Interest is a reward for the creditor, who lent his funds to the debtor. The amount of interest that is not limited, however, if it is too high, it is usury, which is contrary to good morals.

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Interest on arrears

Interest on arrears is charged to the debtor in case that he doesn't pay his loan in time. It is not a classic sanction, but it is the refund money.…

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