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Curiosity fee – A price that a lender will cost borrowers so as to borrow revenue from them. It truly is expressed in share % for each annum.

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Yield – Normally employed for a successful rate of return that's paid on money sector accounts, bonds or discounts.

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Foreclosure – It is a authorized system during which collateral that's been pledged for just a loan may be offered so as to repay the loan if the borrower defaults.

Co-signer – A person who willfully indications a loan settlement Using the borrower and partly assumes duty of repayment of a loan.