Question

In life, we often need credit or loans to move ahead. You may be taking out student loans, for example, to finance your education. Many of us look closely at interest rates to help make these sorts of decisions. Healthcare organizations also must work with interest rates as a part of maintaining financial solvency. What is your experience or knowledge, personally or professionally, with regard to interest rates? Have you explored rates in any context? Shopped around? Been in a position to charge interest rates? As you discuss your experiences, please elaborate and offer examples.

Answer 1

Interest rate is the rate at which is to be paid by the borrower to the lender for taking a loan on credit.

I have been a borrower as a student my borrowing students loan for my further studies and it is impacted by the interest rate associated with it because the interest rate embedded with the loan is related to change in monetary policies, and whenever the monetary policies are announced and changed, there is a significant change in interest rate associated with the loans.

I have never been in a position to charge interest but I have received interest on deposits and which also changes due to any change in monetary policies because monetary policy is a direct tool for a central bank to influence the interest rate which is prevalent in the economy