Terms of credit include the interest rate, collateral, documentation, and mode of repayment that must be satisfied for any credit arrangement. The interest rate is the amount the borrower pays in addition to the principal. Collateral is an asset owned by the borrower that is used as a guarantee to the lender. Documentation of the terms and conditions must be properly submitted. And the mode of repayment, how the borrower will repay the loan, must be clearly stated.