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Why are interest rates on short-term loans not necessarily

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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>
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