3 ms·
Lending money is an investment. You lend money with the expectation of getting more back over time (principal + interest). There is a risk that the borrower wo
by antihipocrat 3y ago
Lending money is an investment. You lend money with the expectation of getting more back over time (principal + interest).
There is a risk that the borrower won't repay the loan, and this is priced in to the interest rate being charged.