Korkolaina
Korkolaina is a general term for a loan that accrues interest. When a borrower takes korkolaina, the lender provides a principal amount and the borrower agrees to repay the principal plus interest over a negotiated period. The annual cost of borrowing depends on the interest rate, which can be fixed for the life of the loan or vary over time in response to a reference rate and lender margin. In addition to interest, many loan contracts include fees such as establishment charges, service fees, and penalties for late payments or early repayment.
Repayment terms vary. Amortizing korkolaina require regular payments that cover both interest and part of the
Types can be secured or unsecured. Secured korkolaina use collateral, which can affect the risk and interest
Risks and protections: If rates rise, the borrower’s payments can increase in a variable-rate korkolaina. Failure
Regulation: Loans are governed by contract law and consumer credit regulations in many jurisdictions, with lenders