Loan against property glossary

This is a fee that is recovered from the borrower at the start of the loan itself. This amount has to be paid to the lender even before the loan is actually used, so this represents a cost for the borrower and he/she will be able to use only the remaining amount of the loan. [...]

A loan that is not backed by any security for the lender. In this situation, the lender does not have any backup to rely on in case the borrower defaults on the loan repayment. There is no safety net present for the lender in such a type of loan and the recovery will have to [...]

A loan where a lump sum is available for the borrower and the interest is calculated on this lump sum amount. The repayment schedule considers the payment of this amount back to the lender.

These are conditions related to the operation of the loan that are common among all lenders or even across various offerings of the lenders. This involves things like the manner of the disbursement of funds or the manner of repayment like using monthly instalments and so on.

A purpose or route where there is a chance that the person could gain or lose their money. This is usually a matter of luck or chance where the person could lose the entire money that he/she has used for the purpose. In this situation, there is often no base on which the decision is [...]

All those people who own the business entity and who work for themselves and not some other person or entity. They often employ other people in their business or profession and based upon the ownership pattern they will be entitled to the share of profits/losses of the business.

The value of the security in terms of the market price that it will fetch if sold at a point of time gives rise to the importance of this point. This value determines the extent of the loan that is available for the borrower and the margin that will be maintained on the loan.

A loan that is backed by a security that is provided by the borrower. This gives an element of comfort for the lender because in case the borrower defaults on the repayment of the loan then the security can be used to recover the amount. This provides a sort of safety net for the lender. [...]

It is the amount of the loan that the bank will give to a borrower. This is actually the figure that is approved for a particular borrower and represents the maximum amount of lending that is permissible by the bank for this particular customer.

This is the monthly detail given to an employee about the amount that he/she has earned during the month. This gives the various heads along with the figures of the amount that is earned and is considered as a proof of the income of the person.