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Confused in the Home Loan jargon? Our glossary
will help you in understanding the basic loan related terms.
Browse through the glossary or serach for a term through the
menu to resolve any doubts.
Glossary of Home Loan terms
I
Inspection of property
Inspection of property intended for purchase or construction
is done at regular intervals, both before and after disbursement
of the loan.
Post sanction inspection of the property is done at each stage
of the disbursement to ensure that the margin money is invested
by the borrower and the progress of work is as per schedule.
Interest
An amount payable by the Borrower to the lender's recompense
for making the loan. Usually a Borrower can choose to borrow
on a fixed interest rate or a floating interest rate.
Interest-Only Loan Agreement
A Loan Agreement under which the Borrower makes no Principal
repayments during the Term, but must repay the whole of
the Principal on loan maturity. During the term of an Interest-Only
Loan Agreement payments of the amount of interest accruing
on the loan will usually be required at regular intervals.
Interest Tax
Housing Finance companies have to pay a tax on the interest
income they receive. One should check whether the interest
rates quoted include interest tax or not. This tax is normally
about 2% of the interest rates charged. Interest tax has
been abolished from April, 2000.
Interest Rate
Rate at which the home loan providers charge interest for
the loan amount.
IRR
Internal Rate of Return (IRR) is the rate at which the lender
accounts for interest. |
