lending-rate

Vocabulary Word

Definition

The 'lending rate' is the interest rate charged by banks or other financial institutions when they lend money. It's the cost for you to borrow money from them.

Examples in Different Contexts

In consumer credit, 'lending rate' determines the cost of consumer loans like personal loans and credit cards. A consumer rights advocate might argue, 'High lending rates can disproportionately affect lower-income households.'

Practice Scenarios

Business

Scenario:

Our expansion plan relies heavily on external funding. We need to consider the terms of borrowing carefully.

Response:

You're right, we should find a bank offering the lowest possible lending rate to finance our expansion.

Marketing

Scenario:

To make our loan products more attractive, we need to make a selling point that resonates with potential customers.

Response:

How about emphasizing our low lending rate in promoting our loan products?