closed-end credit :)

Your house or car are purchased using closed-end credit, which is credit that must be paid in full by a date certain.

Open end credit means khullam khulla udhar lena band.Closed end credit means chup k udhar lena band

Open end credit means khullam khulla udhar lena band.Closed end credit means chup k udhar lena band

Generally, closed-end credit has a better interest rate than that of open-ended credit because closed-end credit is less risky insomuch as there is a limit on how much credit may be utilized (whereas there is no limit for open-ended credit).

Because lenders look at the risk-reward aspects of the product portfolio, a lower-risk product warrants a lower interest rate than one having higher risk.