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Loan Glossary
Administration Fee : Fee to be paid along with application as administration fee
Advance EMI : Number of equated installment (s) paid in advance at the time of disbursement of loan.
Basic qualifier : Who satisfies the eligibility criteria as given by the lender
Category of Borrower : Defining the status of a borrower as salaried or self-employed or professional and also it may be Resident Indian or NRI
EMI : Equated monthly Installment (s) to be paid by the borrower
Exposure : The loan amount as against the value of the asset/product
Flat rate of interest : Percentage representation of the amount of annual interest on the total loan amount
Floating rate of interest : The interest rate to be adjustable with the change of interest rates in future over the loan period
Interest Rate : Rate, which the lenders charge interest for the loan amount
IRR : Internal Rate of Return is the rate at which the lender accounts for interest
Mortgage: security to be provided against loan
Maximum Loan amount : Maximum amount of loan available under a scheme,
Minimum Loan amount : Minimum amount of loan available under a scheme,
Mode of Repayment : Method of repayment of loan, eg : EMI or any other if as per the scheme
Net worth of the applicant : ability of borrower for the repayment of loan to be evaluated by the lender as per their criteria
Processing Fee : The fee to be paid along with the application for the loan (non-refundable)
Security deposit : Amount to be paid as a security against the loan
Tenure : Period from the date of disbursement of loan to the date of closure of loan
Initial Payment : payment made by the borrower at the time of purchase of asset, it includes service charges and advance EMIs etc.
Valuation : evaluation of the worth of the asset in terms of money.
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