A loan is money borrowed from a lender i.e. a financial services provider such as back or a society by a borrower for various kinds of uses and to be paid with interest. A loan is based on the borrower’s ability and promise to pay it back. T
Depending on the agreement there maybe or no collateral attached to it, which means if you default on repaying the loan, the lender can seize your property or other items to recoup the loss of your non-payment.
Other recourse actions can be taken against you when you default on your loan, this can range from presenting your guarantor’s cheque to claim outstanding balance on the loan, reporting the loan as non-performing to Credit Bureaus, reporting to your employers or taking legal action against you.
This is a written agreement between you (borrower) and lender; the agreement will detail terms and conditions of the loan and the repayment of the loan.
This is the amount of money due to be paid back over an agreed period of time (weekly, monthly etc.) according to your loan agreement. It will normally include management fee, interest and a part of the principal borrowed.
This is the amount of time left for the repayment of a loan or contract or the initial term length of a loan. It can be expressed in years, months, weeks or days.
It is the proportion of a loan that is charged as interest to the borrower, typically expressed as a percentage of the loan.
The loan account is used to track transactions related to the loan, which include interest, repayment, and any applicable charges. The loan account is a specific instance of a loan product, with a specified interest rate and an account number.