Starting With ‘A’
case the borrower does not repay his loan, the lender has a choice
to speed up the rate of loan. This clause helps the entire amount
of loan to be paid off immediately.
determines the terms and conditions under which the buyer is buying
and the seller is selling. Later, both the parties sign the contract.
process of writing off or liquidating an asset or loan periodically
on an installment basis is called Amortization.
estimation of the value of a property is called Appraisal. A professional
appraiser makes it.
is a valuable resource owned by a business that can be used to repay
Teller Machine (ATM)
is an electronic terminal through which customers can withdraw,
check balance, and deposit money in a much easier and quicker way.
Starting With ‘B’
Price is the cost of a car. It is also called “Sticker Price”.
refers to error or mistake in the monthly billing statements of
Broker is one who assists in the arrangement of funding and in the
negotiation of contracts.
refer to days when a company is open for trading purposes.
Starting With ‘C’
certificate of ownership issued by the Department of Motor Vehicles
is called Certificate of Title.
the buyer, the seller and the lender negotiate on property and funds,
it is called ‘closing’ or ‘settlement’.
refers to an outstanding claim, which has a negative impact on the
or assets that are offered to secure a loan or other credit is known
charge assessed by a real estate agent or a broker for a service
rendered is called Commission.
consignor is one who signs on behalf of the borrower of the loan
and shares equal responsibility for it. This actually happens when
the principal borrower does not have enough credit to take on the
loan responsibility himself.
refers to the process of determining whether an applicant satisfies
the credit standards of a firm and the amount of credit that should
be extended to him.
organization to which business firms apply for credit information
on prospective customers is known as Credit Bureau.
is a plastic card having a magnetic strip issued by a bank, which
authorizes the holder to buy goods or services on borrowed money.
For e.g. Visa, MasterCard, etc.
refers to time given to a buyer to make full payment for credit
purchases beyond the expiry of which the payment becomes outstanding.
entails norms and guidelines to determine whether and how much credit
is to be extended to a customer.
system provides a rating for all credit applicants on the basis
of various characteristics in regards to creditworthiness.
terms represent the repayment terms extended by a firm to its debtors.
person to whom money is owed is called a ‘Creditor’.
Starting With ‘D’
Debit Card is a card that enables the holder to withdraw money or
to have the cost of purchases charged directly to the holder's bank
account. In case of debit cards, customers do not require going
to the bank to remove the cash from their account and can just go
any ATM for the same.
of repayment of loan is known as Default.
is offered by the manufacturer to the dealer allowing the latter
to purchase a vehicle at a lower price as compared to the invoice
made at the time of purchase of a vehicle is called Down Payment.
The balance is to be paid later.
relevant information about the vehicle to the consumer is called
Starting With ‘E’
Fund Transfer Systems
refers to a system whereby funds can be transferred electronically
rather than by cheque.
Credit Opportunity Act
to this Act, all kinds of borrowers should be treated equally.
of assets or securities by another party is called Escrow.
Starting With ‘F’
of the financial position of a firm is known as Financial Analysis.
extent to which interest on debt magnifies changes in operating
income into even greater proportionate changes in earnings after
taxes is called Financial Leverage. It is also known as ‘Trading
Starting With ‘G’
additional tax on the sale of vehicles that have poor fuel economy
is termed as Gas Guzzler Tax.
total monthly income before taking taxes or deductions into account
is called Gross Monthly Income.
refers to a pledge whereby one person assumes responsibility for
paying another’s debts.
Starting With ‘H’
this type of insurance, the insurer protects the insured against
losses such as fire, windstorm and the like.
Starting With ‘I’
means taking temporary possession of as a security by legal authority.
refers to charge by the lender on the borrowing money, typically
expressed as an annual percentage rate.
Starting With ‘J’
is an account shared by two or more people to share legal responsibilities
in the repayment of loans or debts.
Starting With ‘L’
that holds a lease is termed as Lessee.
that lets property under a lease is termed as Lessor.
Starting With ‘M’
Suggested Retail Price
Starting With ‘N’
after all expenses and taxes have been deducted is called Net Effective
Starting With ‘P’
physical location where the consumer makes a purchase is called
A customer can also make payments electronically through this mechanism.
who make early payment of loans are required to pay penalty imposed
by a bank called Prepayment Penalty.
Starting With ‘R’
means the cancellation of a contract.
refers to a process whereby an existing loan can be paid from the
proceeds of a new loan at a lower interest rate.
Starting With ‘S’
charges are related to the financial aspects of processing a loan.
capacity of a firm to meet its pecuniary obligations is called ‘Solvency’.
Starting With ‘T’
is a charge levied on the cost of a vehicle.
refers to a proper examination of municipal and public records to
confirm the legal ownership of a property.
trustee is responsible for managing assets for the benefit of someone
Starting With ‘U’
process of issuing insurance policies is called Underwriting.
the loan amount is greater than the present value of a vehicle,
it is termed as Upside-down.
Starting With ‘V’
refers to a written verification by the employer to his employee
giving the salary and job details in it.
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