Answer:
Default risk
Explanation:
Default risk is the chance of someone failed to pay a loan. The interest is a reward given to an investor. If the default risk high, the investor will be exposed to a higher risk so they ask for more reward. Therefore people with a higher interest rate have higher default risk.
There are some tools that can determine the default risk of a loan, but mostly it depends on how much the earning of the individual/company and the amount of loan given.
