WHAT IS A LENDING RATE?

What is lending rate?

Lending rate or interest rate is the amount charged by lenders for a certain period as a percentage of the amount lent or deposited. The total interest on the amount or the principal sum is determined by the duration of time over which the amount is deposited or lent.
Most loans use simple interest. However, some also use compound interest, which includes interest on the principal amount as well as on the previously accumulated interests.

WHAT IS A LENDING RATE?