152k views
0 votes
How do banks make money from giving loans to people and businesses

1 Answer

4 votes

Banks make money off loans to people and businesses by exacting a certain amount of interest, or payment for using the loaned money that is added on top of the original amount when paying back. Usually, the higher your credit score (your ability to pay back your debt), the better the percentage rate that is given to you to lure you into loaning.

~

User Montreal
by
9.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.