Home Loan commonly used words while processing Home Loan.
- Home Loan – Amount borrowed to buy a home from a lending institution.
- PF – Processing Fees.
- Sanction – Approval of loan amount.
- Disbursal – Release of the sanctioned amount.
- PreApproval – Credit Approval of loan amount.
- PreEMI – Interest served before commencement of the EMI.
- EMI – Equated Monthly Installment.
- Amortization – Breakup of the principal and interest component in an EMI.
- PrePayment – Advance Principal repayment.
- BT – Balance Transfer or Refinance.
- Reimbursement – Loan Payment to be reimbursed in favour of the borrower.
- Balloon/Bullet payment – One shot principal repayment.
- Alternate Collateral –
- Additional Collateral – A full term secondary security taken along with the primary.
- Interim Collateral – A short duration additional security.
- Penalty or PPC – Pre Payment Charges, levied on advance principal repayment.
- ECS – Electronic Clearing System.
- IT Certificate – Income Tax Certificate for claiming tax benefits.
- SOA – Statement of Account.
- RTR – Repayment Track Record.
- LAP – Loan against Property.
- PLR – Prime Lending Rate.
- Spread or Margin – A constant on which a floating rate floats.
- Floating or ARM – Adjustable Rate Mortgage.
- Fixed Rate – Mortgage on fixed rate.
- MMC – Money Market Condition.
- Credit Report – An independent summary of an individuals credit history.
- RCU – Risk Control Unit.
- FI – Field Investigation.
- PD – Personal Discussion
- MCLR – Marginal Cost of Funds based Lending Rate