Wondering what is a loan agreement? This document is a crucial contract that defines the financial terms and conditions between a borrower and a lender. A loan agreement contains important information relating to the: Loan amount Repayment tenure Interest rates and other charges applicable such as late fees, processing fees and more Repayment schedule and …
Post Type Archives: Glossary
Loan Amortisation
Wondering what is loan amortisation? It refers to a repayment schedule where you, as a borrower, make regular payments towards your loan, covering both a portion of the accrued interest and the principal amount you owe. In an amortised loan, a larger part of your repayment instalment goes towards interest payment and a smaller portion …
Loan Rate
The loan rate is nothing but the rate of interest. It is also called the lending rate. The loan rate applies to a loan during repayment, where you as the borrower not only repay the principal or loan amount you have borrowed, but also the interest due to the lender. The loan rate is thus …