When purchasing an asset, the customer is required to make an initial payment. This payment not only covers the cost of the asset, but also includes any service charges and ...
Ownership refers to the legal right and interest one holds over a property. This right is typically evidenced through a document, such as a title deed, which serves as proof...
In the world of finance, there exists a period known as the 'loan term'. This term refers to the time frame between the disbursement of a loan and the final payment, whether...
When we talk about finance, one term that often comes up is "stamp duty." This refers to the fee or duty that is paid on various financial documents, and the rate varies fro...
A fundamental concept in finance is the deed, a written instrument that conveys ownership of a property in exchange for consideration. This crucial document must be register...
A sale agreement is a legally binding contract between parties that outlines the terms for dealing with a property. It grants the right to obtain a sale deed which specifies...
A mortgage is a financial term for a loan secured by property, typically used for purchasing a home. In some cases, a homeowner may choose to take out a second mortgage, als...
In the realm of finance, it is crucial to understand the concept of penal interest. This term refers to the additional fees incurred when a borrower fails to make timely ins...
As a financial professional, it is vital to understand the concept of borrower obligations in an agreement. These obligations include maintaining a repayment schedule, regul...
A marketable title is one that is free from any legal defects and can be easily transferred to another individual. This means that the person holding the title has the legal...
It is used to evaluate the profitability of potential investments and is expressed as a percentage.
Understanding finance terms is crucial for making informed investment de...
When determining the installment amount, it is crucial to consider a changeable benchmark. This benchmark serves as a reference point for evaluating the success of an investm...
As a finance professor, I'm sure you are familiar with the concept of annual interest on loans. But have you ever wondered how it is calculated? Let's dive into the world ...
One fundamental aspect of loans is the concept of fixed installments. This refers to the regular and predetermined payments made towards a loan over the duration of its term...
A crucial concept in the realm of home finance is the loan-to-value ratio, also known as exposure. This refers to the percentage of a property's value that a home finance co...
In finance, it is crucial to accurately determine the value of an asset, particularly if it is a pre-existing property. This process is known as estimation, or valuation. As...
An important concept in finance is the Equated Monthly Installment (EMI), which refers to the amount of money paid by a borrower each month towards the repayment of a loan. ...
Lenders have established a commonly accepted set of standards to assess an individual's eligibility for a loan. This criteria takes into consideration both the borrower's wi...
When buying a home or a car, you may need to pay a certain amount of money upfront to cover the gap between the purchase price and the loan amount. This is known as a down p...
Documentation, also known as loan papers, refers to the necessary paperwork that must be completed when obtaining a loan from a housing finance company. This includes signin...
In accordance with section 6 of the Companies Act, the definition of a close relative who can serve as a guarantor includes a wide range of family members such as parents, c...
Allow me to introduce to you the concept of "clear title". This term refers to a title that is unquestionably free from any doubts or legal issues. When a property has a cle...
One important concept to understand in finance is the useable area of a building. This refers to the total area of a building that can be utilized at any floor level, exclud...
In the realm of finance, it is crucial to determine the status of a borrower - whether they are salaried or self-employed. This distinction holds immense significance as it ...
The term "balloon payment" refers to the final and often larger payment on a debt, typically occurring after a series of smaller payments have been made. This type of paymen...
One commonly used approach for determining EMI involves allocating funds towards interest and principal at the conclusion of each fiscal year. This method takes into account...
Let's dive into the concept of diminishing balance method, a technique used to calculate interest on loans. The reduced principal is taken into consideration at the end of ...
Amortization refers to the gradual decrease of a sum of money over a specific period. This is commonly seen in loan repayment, where the borrower makes regular payments to r...
In the world of finance, we often come across the term "subscription" when it comes to investing in a company. Simply put, subscription is the process of accepting an applica...
Equated installments are a common aspect of disbursing finances, and it's important to understand how they work. Essentially, these are a predetermined number of payments th...
In the world of finance, there is a term that has gained popularity in recent times, known as ADR or American Depository Receipt. This instrument is traded in the US market ...
Let's discuss the concept of administrative fees in the realm of housing finance. These fees are charged by the housing finance firm to cover their operational expenses. The...
When you receive your sanction letter, it is important to carefully review the terms and conditions of the loan. If you are satisfied with the terms, you must then confirm y...
