Which of the following is NOT contained in the terms of credit?

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Mode of repayment

Rate of interest

Medical information

Collateral and documentation required

answer is C.

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Detailed Solution

Medical information is not contained in terms of credit.
The terms banks lend to a customer are called terms of credit. Interest rate, documentation and collateral are part of the terms of credit. These terms are:

Interest rate: The document mentions the rate of interest at which a loan is lent. It also mentions whether the rate is fixed or floating.

Collateral: An asset against which a loan is taken is called collateral and is also mentioned in the document. It can be a vehicle, a house, or a bank account.

Documentations: Some documents, like employment records and proof of income, are also required at the time of borrowing.

Mode of repayment: The loan can be repaid in 12 months, 6 months, or even monthly instalments. This mode and time duration of repayment is also mentioned in the document.

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