Important personal loan glossaries that you must know

1
Top 26 Personal Loan Terminologies to Know
2
Annual Percentage Rate (APR)

• It includes interest rates and other fees
  associated with your loan.

3
Automatic Payment

• Your EMI is deducted from your account
  automatically on the due date.

4
Arrear

• It refers to missed instalments.

5
Balance transfer

• It means transferring your outstanding dues to
  the new lender at better terms.

6
Credit bureau

• The agency in charge of determining your credit
  score.

7
Credit appraisal

• Method of conducting risk profiling of the
  customer.

8
Co-applicant

• The one whose name appears on the loan
  application alongside yours.
• They are equally responsible for paying EMIs.

9
Deferment

• Refers to a temporary break you take from paying
  regular instalments.

10
Debt consolidation

• It means repaying all your high-interest loans at
  once.

11
Lien

• Refers to the assets you offer to the lender as
  guarantee.
• If you default, the lien gives the lender the
  power to seize your assets.

12
No Objection Certificate (NOC)

• Issued by the lender after the successful
  repayment of your loan.

13
Foreclosure

• Describes the situation in which you pay off all
  your outstanding debts before the due date.

14

• Now that you are aware of the key personal loan
  terminologies, you can sign the loan agreement
  confidently.

15
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Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi - 110057
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