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Debt Amount owed to another that must be repaid.
Default Failure to repay a loan according to terms of loan.
Delinquency Failure of a borrower to make a timely payment on a loan.
Interest Fee charged for use of money.
Interest Rate The amount of interest charged on a loan, usually expressed as a percentage.
Lender Entity that provides loan funds to borrower. Depending on type of loan, lender may be a bank or other financial institution.
Loan Money borrowed from a lending institution, usually repaid with interest.
Loan Applicant Party applying to lender for a loan.
Note Binding legal document you sign when you get a loan. It lists conditions under which you're borrowing and terms under which you agree to pay back loan (also called a promissory note or a mortgage note).
Payment Periodic (usually monthly) instalments paid to a lender to be applied toward repaying your loan.
Principal Loan amount borrowed from a lender, not including interest or additional fees.
Repayment Process of paying back borrowed money.
Term Time limit within which a loan must be repaid.
Variable Interest Rate Interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.
You may freely reprint this article provided author's biography remains intact:
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.