Short answer: Plain-English definitions of the loan and credit terms you will see in loan offers, KFS documents and credit reports, from APR to Written-off, with links to our detailed guides.
Last updated: 12 October 2026. General information, not financial advice. Your lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms.
| Term | Meaning |
|---|---|
| Amortization schedule | A month-by-month table showing how each EMI splits into interest and principal. Learn more |
| APR (Annual Percentage Rate) | The full yearly cost of a loan including interest, fees and charges. The best number for comparing loans. Learn more |
| Balance transfer | Moving an outstanding loan or card balance to another lender, usually for a lower rate. Learn more |
| Bullet repayment | Repaying the whole loan and interest in one payment at the end, common in gold loans. Learn more |
| CIBIL score | A credit score from 300 to 900 issued by TransUnion CIBIL. Learn more |
| Closed (account status) | A loan repaid in full. Positive on your credit report. Learn more |
| Co-applicant | A second borrower whose income is added to yours and who is equally responsible for repayment. |
| Cooling-off period | A period after a digital loan is disbursed during which you can exit by repaying the principal and proportionate APR without penalty. |
| CoR (Certificate of Registration) | The registration RBI grants an NBFC. RBI can cancel it. Learn more |
| Credit bureau (CIC) | A credit information company that keeps credit records: CIBIL, Experian, Equifax and CRIF High Mark. Learn more |
| Credit limit | The maximum you can borrow on a card or credit line. |
| Credit utilisation | The share of your card limits you are using. Below about 30% is healthier. Learn more |
| DLA (Digital Lending App) | An app or website through which an RBI-regulated lender gives loans. RBI publishes the list. Learn more |
| DPD (Days Past Due) | How many days late a payment was, shown month by month on your credit report. Learn more |
| EMI | Equated Monthly Instalment: the fixed monthly payment on a loan. Learn more |
| Flat rate | Interest charged on the original loan amount throughout. Costs much more than the same reducing rate. Learn more |
| FOIR | Fixed Obligations to Income Ratio: your EMIs ÷ net monthly income. Lenders use it to decide how much you can borrow. Learn more |
| Foreclosure | Repaying the whole loan before the end of the tenure. Fixed-rate loans may carry a charge. |
| Gold loan | A loan secured by gold jewellery. RBI caps the LTV at 75% to 85% depending on the amount. Learn more |
| Grievance redressal officer | The person every regulated lender must name to handle complaints. Your first step before the RBI Ombudsman. |
| Hard enquiry | A lender checking your credit report when you apply. Many in a short time can lower your score. |
| Interest rate | The cost of borrowing, before fees. Compare APR instead. |
| KFS (Key Fact Statement) | A standard summary every regulated lender must give you before you sign: APR, fees, total payable, repayment schedule. Learn more |
| LAMF | Loan against mutual funds: borrowing by pledging fund units. Learn more |
| LAS | Loan against securities: borrowing by pledging shares, bonds or fund units. Learn more |
| Lien | A lender’s right over pledged assets until the loan is repaid. |
| LSP (Lending Service Provider) | A company that helps a regulated lender source or service loans, for example through an app. |
| LTV (Loan-to-Value) | The loan as a percentage of the value of what you pledge. Learn more |
| Margin call | A demand to repay part of a secured loan or pledge more when the pledged asset’s value falls. Learn more |
| NBFC | Non-Banking Financial Company registered with RBI. Can lend but most cannot take public deposits. Learn more |
| NOC (No Objection Certificate) | A letter confirming a loan is fully repaid and closed. Keep it. Learn more |
| NPA | Non-performing asset: a loan overdue for 90 days or more. Learn more |
| Ombudsman (RBI Integrated Ombudsman) | RBI’s free complaint scheme for customers of regulated entities, at cms.rbi.org.in. |
| Part-prepayment | Paying off part of a loan early to reduce interest, tenure or EMI. Learn more |
| Processing fee | A one-time charge for a loan, usually deducted upfront, plus 18% GST. |
| Reducing balance | Interest charged only on the outstanding balance. Standard for most personal loans. Learn more |
| Restructuring | Your existing lender changing the terms, such as a longer tenure, to help you repay. |
| Secured loan | A loan backed by an asset such as gold, property or securities. |
| Settled (account status) | The lender accepted less than you owed. Negative on your credit report for years. Learn more |
| SMA (Special Mention Account) | An account showing early signs of stress because of overdue payments. Learn more |
| Soft enquiry | Checking your own credit report. Does not affect your score. |
| Tenure | The length of a loan, usually in months. |
| Unsecured loan | A loan without collateral, such as most personal loans. |
| Written-off | The lender stopped expecting repayment. Very negative on your credit report. Learn more |
Credit report guides: Credit reports explained · CIBIL · Experian · Equifax · CRIF High Mark · DPD codes · Settled vs closed · Raise a dispute · Improve your score
Secured loan calculators: Gold loan · Loan against shares · Loan against mutual funds · Loan glossary
EMI by loan amount: ₹1 lakh · ₹2 lakh · ₹3 lakh · ₹5 lakh · ₹10 lakh · ₹15 lakh · ₹20 lakh · EMI calculator · FOIR calculator
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.