And if this is the case, would such a distinction be justifiable? ii) Interest on term loans is charged on the whole amount of money borrowed and is calculated on a monthly basis whereas in the bank overdraft interest is charged on only the amount overdrawn on a daily basis. Do you personally think that it is reasonable and fair for banks to be allowed to calculate interest rate as described above? Is the bank client sufficiently protected in case the bank decides to overcharge them?
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