Question

A charge assessed by a lender against a borrower who fails to make installment loan payments on time, or by a lessor against a lessee who fails to make rent payments on time.

a) Penalty Interest
b) Default Interest
c) Late Fee
d) Delinquency Charge

Answer 1

Default Interest is the charge assessed by a lender against a borrower who fails to make loan payments on time.

Step-by-step explanation:

The charge assessed by a lender against a borrower who fails to make loan payments on time is called Default Interest. Default interest is applied when a borrower is in breach of the loan agreement, typically because of late or missed payments.