Tag: FAQ Loan

Collateral Security – This is generally defined as additional security borrower offers a lender to secure a loan. Banks may take some additional securities which are called collateral securities. Collateral could be in the form of guarantee from one or two persons, assignment of life insurance policies, lien over shares, and units or other securities or mortgage […]

Penal Charge for Prepayment of Loan  – Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, banks may charge a pre-payment penalty which may differ from bank to bank. Pre-payment penalty may vary according to the sources of funds used to pre-pay the loan – if […]

Interest Rate Reset Clause – An ‘interest rate re-set’ clause allows a bank to review and reset rates at the end of a specified period of time based on interest rates prevailing at that time. Read – Whether Provident Fund (PF) Taxable ?

Fixed Interest Rate – An interest rate on a loan / credit facility that remains fixed either for the entire term of the loan or for part of this term is referred to as a fixed interest rate.

If one has opted for a loan at floating rate of interest he / she needs to know about Floating Rate of Interest. Check out the most important point before opting the Floating Rate of Interest. The Base / Reference rate of the bank to which the floating rate of interest is linked; Whether the spread / […]