Answer:
D: the loan may carry a lower interest rate
Step-by-step explanation:
A deposit is an upfront payment that a borrower makes out of pocket to a lender to receive a credit facility. The deposit expresses the borrower's commitment to repaying and reduces the loan amount to be advanced. Deposits are usually a percentage of the credit amount requested.
A deposit reduces the risk a lender takes by advancing credit to the borrower. The credit amount is reduced, and the borrower has demonstrated commitment to the project requiring financing. Due to these reasons, the lender offers lower interest rates to the borrower.