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 commercial banking, 'lending rate' is the interest rate banks charge on loans. A financial analyst might observe, 'The bank's lending rate adjustment reflects changes in the national economic policy.'

Practice Scenarios

Tech

Scenario:

We want our platform to match lenders and borrowers efficiently. Therefore, the system needs to consider multiple factors.

Response:

Agreed, the system needs to take into account the risk, loan amount, and the market average lending rate.

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.