GLOSSARY

• Amortization: The repayment of a loan or debt in regular instalments. Each installment is split into a principal repayment and an interest payment.

• Asset: An immovable or movable property which can used as a security against which credit can be offered.

• Compound Interest: Interest charged or paid on the principal and the accumulated interest, unlike Simple Interest which is paid only the principal.

• Credit Profile: Profile of an individual or company’s capacity to receive credit and honour the terms and conditions of commercial credit.

• EMI:The loan can be repaid by paying a fixed amount every month, known as Equated Monthly Instalment.

• Lending Rate:The interest charged by the financier on the amount financed.

• Loan Tenure: The time duration for which loan has been provided.

• Principal: The capital sum in a finance transaction as opposed to interest.

• Stamp Duty: Government levies a duty on certain legal documents and financial contracts.