We have compiled a group of some
relevant terms related with personal loan financing. If you have any
questions or comments, please
A large final payment due at the end
of a loan or lease. (Allows a lower monthly payment.
The repayment of a loan or debt in
regular payments. Each payment is split into a primary repayment and
an interest fee.
The pledge of a valuable item, like a
home or car, to guarantee repayment of a loan.
Allows the lender to speed up the
rate at which your loan comes due or even to demand immediate
payment of the entire balance of the loan should you default on you
Interest payable on income and its
accumulated interest. On the contrary, simple interest which is paid
only on the principal.
Property and possessions that can be
used to secure a debt.
A loan to an individual to purchase
goods and/or services for personal, family or household use.
A credit-worthy person, other than
the borrower, who agrees to repay the debt if the borrower fails to
A picture of how you (as an
individual) paid back the companies you have borrowed money from, or
how you have met other financial obligations.
Contract by which the owner of
property allows another to use it for a specified time, usually in
return for payment.
The decline in value of an asset over
a period of time.
A fixed payment made monthly, known
as Equated Monthly Installments.
An arrangement that allows a person
to receive cash goods or services now and pay for them in the
The capital sum as different from
interest or income.
The interest charged by the financier
on the amount financed.
Financiers do not fund the full value
of the asset. They expect the customer to bring a certain % of the
asset as margin. This is called Margin Money.
The time duration for which a loan
has been provided.
Chance or danger of a loss of capital
and or interest in financial transaction.
Government levies a duty on certain
legal documents and financial contracts.
These are charges like stamp duty,
sales tax etc which are imposed by the government.
Instructions to a bank to debit a
fixed amount from your account and pay your financier.