1. Processing Date (card transaction)
It is the date on which the transaction is processed by the acquiring bank.
2. Processing Fee
The charges collected by the Bank to process the customer’s loan application.
3. Promissory Note
A promissory note is a binding legal document that a borrower signs to obtain a loan. It lists your rights and responsibilities under the loan agreement, including how and when the loan must be repaid. Rights and responsibilities for credit card accounts are listed in the Card member Agreement.
4. Property Tax
The tax levied by local corporations, municipal bodies on a property. This tax has to be paid by the legal owner of the property.
5. Provisional Interest and Principal Certificate
A certificate issued informing the ‘projected’ interest payment and principal repayment for the loan account for the upcoming financial year based on the current financial year. This helps borrower in tax planning.
6. Real Time Gross Settlement (RTGS)
RTGS is a system through which electronic instructions can be given by banks to transfer funds from their account to the account of another bank. The RTGS system is maintained and operated by the RBI and provides a means of efficient and faster funds transfer among banks facilitating their financial operations. As the name suggests, funds transfer between banks takes place on a ‘real time’ basis. Therefore, money can reach the beneficiary instantaneously and the beneficiary’s bank has the responsibility to credit the beneficiary’s account within two hours.
7. Recurring Billing
In recurring billing the credit card holder authorizes a merchant or vendor to charge his credit card on a regular basis.
A person who can vouch for your reliability, employment history or other factor needed to determine your creditworthiness/ employability.
Repayment of existing loan by a fresh loan, usually on better terms and conditions. In case of loans secured through mortgage of property etc., the same asset is taken over as security. Banks also refinance their loans to certain category of borrowers through specified refining agencies which provide refinance with matching repayment schedule.
The process of returning of the borrowed loan amount. The repayment has to be made for the entire tenure of the loan amount. Based on fixed or floating interest rates on the loan amount, the banks or financial institution decides on an EMI which has to be paid on or before a date mentioned in the loan agreement every month.
11. Repayment Holiday / Moratorium period
A specified period of time during which recovery of loan remains suspended under a mutual agreement between the lender and the borrower. Interest continues to be charged on the loan during this period.
12. Repayment Mode
It refers to the payment instruction given by the customer for the repayment of the loan dues. Cash, cheque, ECS and other electronic channels are the primary payment modes.
13. Repayment Schedule (amortization schedule)
The repayment schedule provides the details of the interest and principal components of the EMIs payable by the customer on a monthly basis.
14. Repo Rate
Repo Rate is the interest rate for secured overnight or short term financing involving the sale and repurchase of securities. It is basically the rate at which RBI lends to commercials banks for meeting the short term deficits. RBI varies Repo rate from time to time to achieve its monetary policy objectives.
Rests refers to the length of time between the dates on which the interest (on loans and deposits) is compounded. Eg: monthely, quarterly, half-yearly, yearly.