Financial Glossary

APR means Annual Percentage Rate, the yearly cost of borrowing including interest and certain charges.

CIBIL is a credit bureau score used by lenders to assess credit behaviour and repayment history.

Credit utilisation is the percentage of available credit limit that you are using.

EMI means Equated Monthly Instalment, the fixed monthly payment made towards a loan.

FOIR means Fixed Obligation to Income Ratio and shows how much of your income is already committed to EMIs and obligations.

A hard inquiry is a lender credit check made when you apply for a loan or credit card.

Interest rate is the percentage charged by a lender for borrowing money.

Loan foreclosure means closing a loan before the scheduled end date by paying the outstanding amount.

Loan tenure is the time period over which a borrower repays a loan.

LTV ratio means Loan-to-Value ratio, the loan amount compared with the value of collateral.

Moratorium is a temporary period during which full repayment may be deferred as per lender terms.

Pre-EMI is the interest paid on a home loan before full EMI repayment starts, often during construction-linked disbursement.

Prepayment means paying extra amount towards a loan before the scheduled due date.

Principal is the original loan amount borrowed or the outstanding loan amount excluding interest.

Processing fee is a charge taken by the lender for evaluating and processing a loan application.