Calculates the entire loan payment including interest on the outstanding balance which is to be paid off at the end of a fixed period.
Annual Percentage Rate (APR)
APR is the interest rate charged on the loan. It is the cost of credit on a yearly basis expressed as a percentage.
A debt which is unlikely to be paid
Property put as a security against the amount borrowed.
A numerical value used by creditors to predict how likely an individual is to repay a new loan.
Past and future ability of a borrower to repay debts.
Amount charged for features sold separately by auto lender such as undercoating or service offered in warranty period.
Failure to repay a loan or failure to meet the terms of the loan agreement.
Amount paid by the customer in cash or trade-in value to get an auto loan in order to finance the remaining of the purchase price.
Difference between market value of a property and the outstanding mortgage on it.
A payment made later than agreed upon
Is the primary step in obtaining a loan. It involves filling of the loan application form.
It determines the amount of monthly payment that a borrower has to pay on the loan borrowed.
Penalty imposed by the bank on the early payments.
Specified period of time for which the loan is provided by the lender.
A document which gives evidence of an individual’s ownership of a property
Any fees or charges that are collected in advance, before a loan is advanced.