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Guarantor
The person who promises to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.

Guarantee
A promise made by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.

Fixed Rate lending
When in a contract of loan the rate of interest is fixed and there is no clause as to the change in the rate of the interest with some other rate as the benchmark it is called Fixed Rate Lending. In this type of lending the rate of Interest does not changes during the period of the contract.

Flat Rate of Interest
A method of calculating the interest rate based on the total outflow of money. The method does not take into consideration the time value of money and is thus a crude measure. Flat rate of interest is the % paid in excess of the finance amount, and is calculated on per year basis.

Hypothecation
A hypothecation is an equitable charge on the goods without possession, but not amounting to a mortgage. The contract is done to secure a debt.

Concluded.

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