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Loan Glossary
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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
R
Refinancing
The repayment of an existing loan from the proceeds of a new
loan. A Refinancing could involve repaying one lender and
borrowing from another lender.
Registration
The process following Settlement, by which legal title to
property is transferred into the name of the purchaser.
With a land purchase this is done through Land Information
India. Where the land purchase is secured by a Mortgage,
the Mortgage will be registered on the Certificate of Title.
Registration value
It is the value of the property at which the property is
registered. The rate for registration value is generally
fixed for specific areas by the authorities in most places.
Repayment
The payment of EMI or pre-EMI as applicable is called as
repayment of the loan. In case of NRIs this amount should
come from Non-Resident (External) Account/Non-Resident (Ordinary)
Account in India.
Repayment Holiday
A period during which loan repayments are suspended. During
this period interest still accrues. Payments are generally
adjusted afterwards so that the loan is still repayable
within the original time period.
Role of guarantor
The role of a guarantor is commitment by the way of agreeing
to the terms and conditions of the loan and liable to the
extent of the loan/liability together with the interest
and other charges.
Refinance Charge
Housing Finance companies do not charge you for prepayments
from your own savings. However, if you retire a loan using
money borrowed from another Finance Company, you will have
to pay a refinance charge of 1-2% of the loan outstanding.
Rest
Interest rates are quoted on a daily rest, monthly rest
or annual rest basis. The annual rest quote implies that
the company gives you the credit for the monthly principal
repayments only at the end of each year. Such loans are
therefore more expensive than a monthly/daily rest loan.
The shorter the tenure of the loan, the greater the effective
interest rate difference will be.
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