Personal Loans and Payday Loans Glossary

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Accrued Interest This is an accumulated interest you have to pay. It may be fixed or increasing over time. Annual Fees Annual fees are what banks charge on an annual basis for their maintenance. Credit lines. Applied Interest Rate Also known as flat interest rates. And is used by banks to entice customers. When you compare personal loans, look at effective interest rates (EIR) instead, as this rate factors in all fees. Balance Transfer A balance It usually has a grace period for 6 to 12 months. Borrower This financial institution or moneylender. If you take the borrower. Cancellation Fees When you want to cancel your account. This is to credit line loans. Collateral With secured loans, can be approved. In the event that you cannot pay off your debt This is called a collateral. Conversion Conversion is the act of transferring your debt to another bank. Credit Limit Usually applicable to credit lines, the lender can borrow from the bank. Credit Line As one of the most popular personal loans in Thailand You only pay interest on what you’ve borrowed. Credit Rating Your credit is a measure to be a borrower. This app is accessible by banks in your bank account. Credit Report The credit report is a record of the borrower’s entire history. Credit Bureau Thailand issues this to banks whenever they are enquire about a borrower. Default A default is The bank might repossess what you have put up as collateral. Early Redemption Charge With term loans such as personal instalments Effective Interest Rate The effective interest rate (sometimes called EIR) is what you need to know for loans. This is because EIR takes into consideration the compounding interest, processing and handling fees, which comes up to what you actually pay on your loan. Fixed Rate Loan This does not fluctuate throughout the loan tenor. Grace Period Also known as an interest period, this is a 0% interest on your interest. Balance transfer loans are known for their grace periods, which can go up to 12 months. Late Payment Fees The payment date, the lender will charge you a late payment fee. Lender This financial institution, moneylender advancing a loan.

Loan Tenor

Loan Tenor

A loan tenor, or a loan term, is the length of time you agree to pay the loan. It can range from months to years. Minimum Sum This is the minimum. This is more. Monthly Repayments A monthly repayment is the sum you are required to pay the lender each month. This usually includes the interest as well. Personal Instalment A personal instalment is a loan that disburses a fixed amount of time. Revolving Loan Whenever you need money, you can borrow up to When you’ve paid your monthly statement, you can borrow more. This is the opposite of a term loan. Secured Loan A collateral before it can get approved. Because of the secured loans usually offer lower interest rates compared to unsecured loans. Term Loan With a term loan, you have to make a monthly payment This is the opposite of a revolving loan. Total Amount Payable When you add the interest rates, processing and handling fees on the amount tenor, the total amount payable. Unsecured Loan This loan does not require collateral. Some unsecured loans are credit lines and credit cards.

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