Q. 24.7( 3 Votes )
How are high-interest rates on loans harmful?
Interest rates are the main component of the loan which makes the loan costlier. Cost of borrowing will be high if the interest rates are very high. When the rate of interest is very high, then the loan installment will be high which is to be paid in a fixed tenure. This will make the fixed income group people face a very critical situation because of the increase in the amount to be paid.
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