What are Interest Rates?

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Interest rates are pivotal in propelling the economy forward. They play a fundamental role in prompting individuals and businesses to utilize credit facilities, thereby facilitating economic activity.

Interest is a charge incurred on various types of loans, including those for cars, homes, or personal expenses, as well as on credit cards. Borrowers agree to pay interest rates as compensation for borrowing money, in addition to the principal amount borrowed.

Moreover, interest rates are pertinent in the context of banks’ bonds and savings accounts. When individuals invest in such financial instruments, they receive interest payments from banks and financial institutions. This serves as a form of compensation for depositing funds with them.

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CashLoanPH Changed status to publish 29/03/2024