What is Interest Rate
Any time you take a loan, the bank or the lender will charge you additional cash from the amount you have borrow, this is amount is separate from processing fees and other charges, the proportion of the loan that is charged to you is what is called interest rate, this is typically calculated or expressed as annual percentage of the outstanding loan amount.
Interest rates are most common to lending or borrowing transactions.People borrow money to purchase houses to finance big projects, or even start a new business or pay college or university tuition.
Whichever reason you borrow a loan, the repayment is either in a lump sum by a pre-determined date or in periodic installments.
To gain a more understanding on loans and interest rates and how they are calculated visit your nearest lender or bank and a friendly lending consultant will assist you.