Question: A Loan Bearing Low Rate Of Interest Is Known As?
a. Hard loan
b. Soft loan
c. Capital loan
d. Riel loan
Show Answer
Soft loan
A loan that comes with a low rate of interest is typically referred to as a “Soft loan.” These loans are often more affordable for borrowers because they reduce the amount of interest paid over the life of the loan, making the overall cost of borrowing less expensive. Financial institutions may offer low-interest loans as a promotion or to qualified borrowers with excellent credit histories. These types of loans are particularly attractive for large purchases such as homes, cars, or for consolidating existing debt under more favorable terms.
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