Confused in the Home
Loan jargon? Our glossary will help you in understanding
the basic home loan related terms. Browse through the glossary
or serach for a term through the menu to resolve any doubts.
Glossary of Home Loan terms
Annual rest is the basis for the kind of appropriation by
which the EMI is collected from the borrower every month and
the appropriation towards interest and principal is made at
the end of the financial year.
Acceptance letter is the letter that a borrower or applicant provides on reading the terms of the issue; and communicate his willingness to accept the loan by way of an acceptance letter within a particular time frame which varies between 1-3 months from the date of the sanction letter and also pay the requisite administrative fee.
Advanced EMI is the number of equated monthly installments in the form of post dated cheques, paid out in advance at the time of disbursement of loan.
Administrative fee is a one time fee; generally non-refundable; payable before the loan is disbursed. Rates may vary from 1-2% of the loan amount. It is an unavoidable pay out by which bank or HFC can make money of you.