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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Contractual penalty

Contractual penalty is a penalty that is listed directly in the contract between the client and the bank institutions. As for sanctions, the bank may…

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