What's an interest in a loan?
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eustace
Apprentice
Joined: 19 May 2007
Posts: 3
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 Posted: 04/24/08 - 05:02 Post subject: |
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| I have recently been thinking about starting a new business. In order to have enough funds to finance it, I would like to get a loan from a bank. However, I have seen that most loans have interests attached. Since I really do not have any experience, I would like to know what exactly these represent. If anyone could tell me, that would be great. Thanks in advance. |
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eugenius
Apprentice
Joined: 20 Jun 2004
Posts: 9
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| Posted: 05/24/08 - 02:47 Post subject: |
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| Getting a loan from a bank, or any other type of lender essentially means them giving their own money to you, with certain period of time over which you have a chance to return that money. Lending money is their business, and as such, it is one where they look to make some profits, or they would not be doing it. Interest in a loan represents the amount of money you have to pay over the original sum borrowed, which means that is the amount of money they will earn. I hope you find the info helpful. |
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