Answer to Question #226478 in Marketing for OPUNI LOUIS

Question

you have been hired as a consultant to Freedom Inc. a consumer-focused financial institution intending to enter the Ghanaian market. critically analyze what factors you shall consider in advising freedom inc. on how it should set its lending interest rates, accounts commission, fees and charges

Answer 1

Factor to as a consultant advising Freedom Inc. on how it should set its borrowing interest rates, accounts commission, fees, and expenses include credit score, credit history, loan size, loan type, length of term, co-borrowers, and payment frequency. The higher the company’s credit score, the lesser the rate. The less credit history a company has, the little awareness a borrower has of its debt repayments. The lower the rate, the higher the payment history. Depending on the circumstances, the company’s initial interest rate may be relatively low with an adjustable rate than a set price, but it runs the risk of the rate raising substantially afterward.