A more thorough explanation:

A carrying charge is an additional cost that a borrower pays to a creditor for carrying installment credit. It is not just the interest rate but also includes other expenses that the borrower has to pay. These expenses are usually associated with property ownership, such as taxes and upkeep.

For example, if you take out a loan to buy a car, you will have to pay interest on the loan amount. However, you may also have to pay additional expenses such as insurance, registration fees, and maintenance costs. These expenses are part of the carrying charge.

Similarly, if you own a rental property, you will have to pay property taxes, insurance, and maintenance costs. These expenses are also part of the carrying charge.

The carrying charge is an important factor to consider when taking out a loan or buying a property. It can significantly increase the cost of borrowing or owning a property, and can affect your ability to make timely payments.