Debtor an individual who removes financing. Also called a debtor (above).
Default: When a cardholder does not result in the minimum needed repayment on the loan. Defaults are recorded in your credit report and also have a bad impact on your credit history.
Drawdown: When a loan provider attracts down the loan from their funds into the bank-account while the money is used by the borrower. Interest is generally charged through the time the mortgage funds are used in the borrowerвЂ™s banking account.
Drawdown date: The date by which you first utilize the money loaned for you.
Equity: once you borrow funds to get a valuable asset, equity is the distinction between the worth regarding the asset and exactly how much you have got kept to repay. For instance, if an owner purchases automobile with that loan for $10,000 and has now paid back $3000, the dog owner has equity of $7000 in the automobile. Also referred to as a claim that is residual ownership.
Additional repayments: Additional re re payments you choose which will make to your loan along with the minimum needed repayments. These allow you to spend your loan off faster and spend less in interest.