Home Loan Glossary

Home Loan commonly used words while processing Home Loan.

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

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