Browse our complete glossary of financial terms. Click any term to learn more.
Amortization is the systematic repayment of a loan over time through fixed periodic payments. Each payment is split between interest...
loan fundamentalsA bank guarantee (BG) is a promise from a bank that the liabilities of a debtor will be met. If...
business and working capitalA business loan provides financial support for various operational and growth needs — working capital, expansion, equipment purchase, inventory procurement,...
business and working capitalCash credit is a short-term revolving facility where a bank provides a credit limit against pledged current assets — inventory,...
business and working capitalA co-applicant joins the primary borrower in the loan application. Combined income increases loan eligibility. Most lenders require property co-owners...
home loan essentialsCollateral is any asset of value — real estate, securities, gold, or fixed deposits — pledged to the lender to...
loan fundamentalsA credit score, commonly referred to as CIBIL score in India (after TransUnion CIBIL, the leading credit bureau), is a...
credit and eligibilityDebt consolidation involves taking a single loan (usually secured, like LAP) to pay off multiple high-interest debts — credit card...
financial planningDTI measures total monthly debt payments (all EMIs, credit card minimums, other fixed obligations) as a percentage of gross monthly...
financial planningDisbursement is the process by which the approved loan amount is released to the borrower's account or directly to a...
loan fundamentalsA down payment is the portion of the purchase price paid from personal funds, with the rest financed by loan....
home loan essentialsAn Equated Monthly Instalment (EMI) is the fixed amount a borrower pays to the lender every month until the full...
loan fundamentalsA fixed interest rate does not change for the agreed period, regardless of market rate movements. In India, truly fixed-rate...
interest rates and pricingA floating rate changes with the benchmark lending rate. Since Oct 2019, all new bank floating-rate loans must link to...
interest rates and pricingFOIR measures how much of a borrower's monthly income is already committed to fixed obligations — existing EMIs, credit card...
credit and eligibilityForeclosure means paying off the entire remaining loan balance in one payment before the tenure ends. Unlike partial prepayment (which...
financial planningA home loan (housing loan/mortgage loan) is a secured facility where a bank, HFC, or NBFC provides funds for purchasing,...
home loan essentialsA balance transfer allows borrowers to move their outstanding home loan to a new lender with better terms — primarily...
home loan essentialsIncome Tax Returns are the annual filings with the Income Tax Department declaring income from all sources and tax paid....
credit and eligibilityKYC is a regulatory requirement for all Indian financial institutions to verify the identity, address, and financial profile of customers...
regulatory and complianceA line of credit is a revolving facility where the lender sanctions a credit limit, and the borrower draws funds...
business and working capitalLoan Against Property (LAP) allows borrowers to unlock the value in their existing property without selling it. The property —...
secured lendingLoan Against Securities (LAS) allows investors to access liquidity without selling their investments. Securities are pledged (not sold) to the...
secured lendingLoan eligibility is the assessment process lenders use to determine the maximum amount they can safely lend to an applicant....
credit and eligibilityLoan restructuring allows lenders to modify existing loan terms when borrowers face temporary financial hardship. Options include: extending tenure (lower...
financial planningA loan sanction letter confirms the lender has approved the application and specifies key terms: sanctioned amount, interest rate, tenure,...
loan fundamentalsLoan tenure refers to the agreed-upon period within which the borrower must fully repay the loan, including principal and interest....
loan fundamentalsLTV is calculated as (Loan Amount / Property Value) x 100. RBI sets maximum limits: 90% for loans up to...
home loan essentialsA margin call occurs in Loan Against Securities when the market value of pledged securities declines, causing the LTV ratio...
secured lendingMCLR was introduced by RBI in April 2016 to ensure better transmission of monetary policy changes to borrowers. It is...
interest rates and pricingA mortgage creates a legal charge on immovable property in favor of the lender. In India, mortgages are governed by...
home loan essentialsMSME loans are tailored for Micro, Small, and Medium Enterprises classified by the Government of India. Government schemes include MUDRA...
business and working capitalNBFCs are companies registered under the Companies Act that engage in financial activities — loans, investments, asset financing, insurance —...
regulatory and complianceA Non-Performing Asset (NPA) is a loan on which the borrower has stopped making principal or interest payments for more...
credit and eligibilityAn overdraft facility allows account holders to withdraw funds exceeding their balance up to a sanctioned limit. It can be...
business and working capitalA personal loan is an unsecured credit facility available to salaried and self-employed individuals for any legitimate personal purpose. No...
business and working capitalA pledge involves the transfer of possession of movable assets to the lender as security. Unlike a mortgage (which applies...
secured lendingPre-EMI interest is charged during the period before full loan disbursement and regular EMIs begin. Common in under-construction property loans...
home loan essentialsPrepayment means paying off part or all of an outstanding loan before the scheduled date. Partial prepayment reduces outstanding principal...
loan fundamentalsThe principal amount is the base sum borrowed from the lender at disbursement. All interest calculations are based on this...
loan fundamentalsA processing fee is a non-refundable charge covering administrative costs of evaluating the application, verifying documents, and assessing eligibility. In...
loan fundamentalsProject funding (project finance) is a specialized form of lending where the loan is structured around a specific project's cash...
business and working capitalA certified valuer (appointed by the lender) assesses property value considering location, area, age, condition, construction quality, amenities, and comparable...
home loan essentialsThe Reserve Bank of India is India's central bank, established in 1935. It regulates all banks, NBFCs, and payment systems;...
regulatory and complianceThe repo rate (Repurchase Rate) is the RBI's primary monetary policy tool. When the RBI lends money to banks overnight...
interest rates and pricingSARFAESI Act (2002) empowers banks and financial institutions to recover non-performing assets (NPAs) by seizing and selling the collateral without...
secured lendingA secured loan requires the borrower to pledge an asset as security. Common examples include home loans, LAP, and LAS....
loan fundamentalsStamp duty is a mandatory state government tax on property transactions. In India, rates vary from 3-8% of market or...
home loan essentialsA top-up loan is additional borrowing on an existing home loan. After paying EMIs for a period, the outstanding balance...
financial planningAn unsecured loan requires no asset as security. Approval is based on creditworthiness, income, repayment history, and financial profile. Personal...
loan fundamentalsWorking capital loans are short-term financing to cover daily operations — payroll, rent, inventory, supplier payments, and utilities. Unlike long-term...
business and working capitalMonthly EMI: --
Total Interest Payable: --
Total Payment (Principal + Interest): --
