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Glossary

A

Amortization

It is the process of gradual repayment of the loan through regular installments, which include part of the principal amount and interest.

B

Banking domicile

It is the bank account designated by the borrower to receive the installments and make the payments related to the loan.

Billing notice

It is a notification sent to the debtor to inform him about the maturity of a portion of the loan and request payment.

Borrower

It is the individual or legal entity that requests and receives a loan from the lender, assuming the responsibility of paying the amount borrowed according to the agreed conditions.

Bureaucracy

It refers to the set of procedures and administrative procedures necessary for the granting and registration of a loan.

C

Credit

It is the amount of money that a financial institution lends to a person, with the expectation that it will be returned within a certain timeframe.

Credit dossier

It is a file or record that contains detailed information about a person’s credit history, including previous payments, debts, and other relevant information.

Credit limit

It is the maximum amount that a person or company can obtain in loans or use on a credit card, established based on their financial capacity and credit history.

Credit risk

It refers to the probability of default or non-payment of financial obligations by the borrower, taking into account their credit history and ability to pay.

Credit score

It is a numerical score that reflects a person’s credit history, indicating the likelihood of meeting their financial obligations.

Contract

It is a document that establishes the terms and conditions of the loan, including the amount, interest rates, payment term, among others.

Contractual stipulation

It is the clauses and conditions established in a loan agreement that define the rights and obligations of the parties involved.

D

Debt

It is the total amount that a person or company must pay, including the principal amount of the loan, interest and other charges.

Default

It is the situation in which the borrower does not comply with the payment obligations established in the contract, failing to pay the installments within the agreed period.

Discharge

Loan discharge is the legal cancellation of a borrower’s obligation to repay some or all of a loan.

Due date

It is the date on which a portion of the loan must be paid by the borrower. Failure to pay by the due date may result in additional penalties and interest.

E

Enforceability

It refers to the condition in which a loan becomes chargeable, that is, when the installments must be paid according to the established term.

F

Financial burden

Financial burden are the additional costs related to an event, situation, or course of action that can make it difficult to manage your regular expenses and financial obligations.

G

H

I

Interest

They are the additional amounts charged on the loan amount, representing the cost of the borrowed money, usually expressed as a percentage of the total amount.

Interest rate

It is the percentage applied on the loan amount that the borrower must pay to the lender as a form of remuneration for the loan.

 

Insurance

Credit insurance is protection for a lender in case a borrower defaults on a loan.

 

J

K

Know-how

It is the specialized knowledge or expertise in a particular area or sector, which can be considered as a valuable asset for the granting of a loan.

L

Loan

It is the action of making money or financial resources available to a person or company, through a contract, which must be paid with interest and within a certain period.

M

Mutual

It is a contract in which one person lends money to another, who must return the amount borrowed with interest in a given term.

N

O

Overdue

It refers to the installments of the loan that are due and have not been paid by the debtor within the established period, characterizing the default.

P

Payment Guide

It is a document that contains the information necessary to make the payment of a portion of the loan, such as amount, due date and bank details.

Personal loan

It is a type of loan intended for individuals, which can be used for various purposes, such as payment of debts, purchase of goods or services, among others.

Portion

A loan portion can refer to a specific part of the total loan amount.

Pawn

It is a judicial act that allows the blocking or seizure of the debtor’s assets as a form of collateral for the payment of a debt, including loans in arrears.

Pre-approval

It is a preliminary assessment conducted by the lender to verify the eligibility of the borrower based on basic information, prior to the final approval of the loan.

Q

R

Report

Evaluation report – A loan report is a document that summarizes the details and activity of a loan, such as the balance, interest rate, and payment history.

S

 

 

 

T

Term

It is the period of time established for the total repayment of the loan, including the payment of the installments. The term may vary according to the type of loan and the agreed conditions.

U

Usury

It refers to the practice of charging excessive or abusive interest on a loan, exceeding the established legal limits. Usury is prohibited by law in many countries.

V

 

 

W

Working capital

It is a type of loan intended for companies to finance their daily operations, such as payment of suppliers and salaries.

X

Y

Z