The purpose of this document is to avoid using different words for the same thing. It is mainly intended to be used as help when naming API entries and code variables.
Word / Phrase | Description |
|---|---|
payment | a payment. Money transfer in general. |
installment | one loan payment required to be paid on the selected date |
installment plan | a list of all installments of the loan |
principal | the amount of money lent by the bank to the client |
interest | the extra money on top of the principal the client has to to pay for the loan (next to fees, penalties) |
interest rate | rate usually in % that is applied (yearly/monthly/daily) to the principal to calculate interest. Based on application frequency the number differs (more frequent application → smaller interest rate). |
APR - Annual Percentage Rate | The official name of the IR, the yearly percentage rate that reflects the amount of interest charged on a loan. This should be stated on the FE. |
fee | the money the client has to pay for various bank services |
penalty | the money the client has to pay because of overdue payments or other violations of the terms and conditions |
overdue payment | installment payment that was not done before or on the due date |
due date | the agreed date when the installment shall be paid |
default | failure to pay an installment by the due date note: this is not official definition of Client’s Default (as per provisioning policy or T&Cs). Our use of “default” in documentation is wider to simplify the language |
tenure | the time customer has given to repay the loan |
tenor | the number of installments |
DPD - Date post due | Reference to the date an account is in after passing through its scheduled due date/ payment date |
EMI | Equated monthly installment |