Interest on loan = loan amount * loan duration * interest rate The loan amount, loan term, loan interest rate is determined on the basis of the project, methodology, loan demand of the customer, the maximum lending rate is compared with the value of loan collateral, the source of repayment and debt repayment ability of the borrower.b) loans under the credit limit: Concept: lending method in which the Bank and the client agreement a maximum loan level in a certain period of time. Under this method, the outstanding loans does not exceed loans agreed in the credit contract.
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