Penal Interest

What does it mean? In case instalments are not being paid by the borrower as per the loan contract, then a penal interest may be levied by the lender. Penal interest rates are generally decided during contract negotiation and are charged as per the terms.  These are charged on greater loan amounts. Penal interest is […]

Prime Rate

What does it mean? The prime rate is the interest rate at which banks lend to customers or businesses with the highest credit rating or simply the most creditworthy customers. Points to remember It is used on many short-term loan products which include adjustable mortgage rates, automobile loans, credit cards, and home equity loans. The […]

Profit and Loss Statements

What does it mean? Profit and Loss Statements are similar to income statements. They maintain a record of a business’s net income and costs for any given period of time as well as the ability of the company to generate profits in synchronization with other factors. Points to remember   These statements are usually used […]