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A type of loan where the rate of interest is linked to the Prime Lending Rate (PLR) and the gains/losses arising out of fluctuation in the interest rate are borne by a borrower. The interest rate on loan is generally revised at regular intervals. If there is a change in the [...]

A letter submitted by a loan applicant indicating his/her willingness to accept a loan as per the terms mentioned in a sanction letter. This letter is normally sent out within a particular time frame, varying between 1-3 months from the date of the sanction letter.

An agreement that confers upon an owner the right, while keeping the agreement alive, to recover from a defaulting hirer the entire unpaid balance of a loan amount. In such case, on default in payment of any one installment, the full outstanding balance of the loan shall immediately become due.