What is meant by the capital borrowed?

The actual amount that is borrowed by the individual is known as the capital borrowed.

This is the base amount that has to be paid back to the lender.

This is actually the amount that is required as funds for the individual which leads to a loan being taken.

It can vary according the need of the individual.

One has to distinguish the capital from the interest because paying back interest does not lead to the loan obligation being over.

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