How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Haider Your Own Question
Haider
Haider, Tutor
Category: Finance
Satisfied Customers: 355
Experience:  Doing CAT
19539292
Type Your Finance Question Here...
Haider is online now
A new question is answered every 9 seconds

Why are interest rates on short-term loans not necessarily

Resolved Question:

Why are interest rates on short-term loans not necessarily comparable to each other? Give three possible reasons.
Submitted: 7 years ago.
Category: Finance
Expert:  Haider replied 7 years ago.
<p>1 Because of its inherent characteristic like compensating balance loan requires to maintain certain portion of loan to be kept with bank.</p><p> </p><p>2. Due to collateral requirement i.e. security requirement.</p><p> </p><p>3 Due to tenure of loan or renewable facility of loan.</p><p> </p><p>4 Service charges other than interest rate.</p><p> </p><p>If you are satisfied accept it and leave positive feedback.</p>
Haider and other Finance Specialists are ready to help you