Loans are money that is lent for a fee, called interest. Interest is the cost of using borrowed money and can be fixed or variable. It is determined based on various factors such as risk, inflation and monetary policy. Loans enable consumption and investment, but non-payment can lead to the loss of assets or a drop in credit rating. Interest can significantly increase the total cost of the loan, especially for long-term loans. Taking out a loan requires careful planning and understanding of financial obligations. You can find everything, including other interesting facts about loans and interest, in the video by clicking on the article!
