Question

In this discussion forum share how interest rate changes affect your company/ I work for a...

In this discussion forum share how interest rate changes affect your company/ I work for a private school.

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Answer #1

Answer:
Interest rate changes affect my company (here school) in following ways:

  • Increase in interest rate will affect the parents who are having debt. They will be having less income to spend on their children, so they may think to shift the school of the children to more affordable private school where fees are less.
  • If more students would be moving out of the school, to compete with other school even my school will have to decrease its fees or provide more facility with same fee which will decrease the revenue of my school.
  • If my school would have been taken loan for expanding or adding more infrastructure to the school, interest that needs to be paid by the school will increase which will decrease the profitability of the school and vice versa in case of decrease in interest.

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