Chapter 2

Does a low interest rate mean a cheap loan?

Lãi suất thấp có nghĩa là khoản vay rẻ?

The chapter's question

What does this loan really cost me, all in?

Big idea

The interest rate is only part of it; fees, collateral and covenants are the rest.

In this chapter

  1. Part 2.1

    Interest, Fees, Insurance

    Added together, what is the real cost?

  2. Part 2.2

    What You Pledge

    What am I pledging, and what if I lose it?

  3. Part 2.3

    Covenants

    Which ratios does the contract require me to hold?

  4. Part 2.4

    Personal Guarantees

    Who is guaranteeing this, and what does that mean?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Borrowing and Raising is free to read right here.

Read in Conan School

Chapters of Borrowing and Raising

  1. 1.Am I borrowing to grow, or to patch a hole?
  2. 2.Does a low interest rate mean a cheap loan?
  3. 3.Do lenders fund your idea, or something else?
  4. 4.Why is money you never repay the most expensive?
  5. 5.Does the hard part start after the loan is signed?