asked 144k views
0 votes
The financial institution that generally charges the lowest rates on loans is a

1 Answer

2 votes

The correct answer is a Credit Union.

Credit Unions are able to charge lower rates than a bank because of their structure. Banks are set up as a for-profit business, so they charge more in order to make themselves more profitable. Credit Unions are set up like cooperatives where the customers own them, or like a non-profit organization. This allows Credit Unions to charge lower rates. Additionally, the Credit Unions normally distributes the profit back to the customer.

answered
User Tak
by
7.1k points

No related questions found