Solution:
Credit is also known as loan.Credit is the facility that commercial banks along with other institutions provide to their account holders where the individuals can borrow a specific amount from the bank. However, there are certain conditions to be fulfilled. The borrower must pay the amount of interest along with the payment of the principal amount in a specified time. Banks also ask for good creditworthiness and collateral before giving a loan to a person or firm. If the creditworthiness shows the quality of the individual to pay back his loan on time, and the collateral is satisfactory, the bank provides loans to the borrower.
