Definition: Loan terms refer to the amount of a loan, the length of a loan, and the loan’s interest rate. The loan terms include conditions and requirements agreed upon by the lender and the borrower.
Examples:
John just financed his new car. The terms of his loan include a financed amount of $22,500 for 48 months with a 2.99 percent interest rate. John’s payments will be $497.92 a month, and due on the 15th of each month. If the loan is paid late John will be assessed a $35 late fee.
