by crispin0 | May 5, 2025 | Terminologies
The loan term refers to the period during which the borrower must repay the loan in full. It can range from a few days to several years. Loan terms impact the interest rate and monthly repayment amount.
by crispin0 | May 4, 2025 | Terminologies
A loan tracker is a feature in some loan apps that allows borrowers to track their loan status, upcoming payments, and remaining balance. It helps borrowers manage their debt more effectively and stay on top of their repayments.
by crispin0 | May 3, 2025 | Terminologies
A microloan is a small loan, usually given to individuals or small businesses. Online lending apps often provide microloans for personal expenses or small-scale business operations.
by crispin0 | May 2, 2025 | Terminologies
The minimum payment is the lowest amount the borrower must pay each month to remain in good standing with the loan. It typically includes both interest and a portion of the principal.
by crispin0 | May 1, 2025 | Terminologies
Overdraft protection is a service provided by some loan apps to prevent the borrower’s bank account from going into the negative. If the borrower’s balance is insufficient to cover a payment, the loan app can cover the difference.
by crispin0 | Apr 30, 2025 | Terminologies
The payment due date is the date by which the borrower must make their scheduled loan payment. Missing this date can result in penalties, fees, or negative impacts on the borrower’s credit score.
by crispin0 | Apr 29, 2025 | Terminologies
Peer-to-peer lending connects borrowers directly with individual investors through an online platform. These platforms typically bypass traditional financial institutions, potentially offering better rates for both borrowers and investors. Borrowers apply for loans...
by crispin0 | Apr 28, 2025 | Terminologies
A personal loan is a type of unsecured loan that can be used for various personal expenses, such as medical bills or home improvements. They are often issued by banks, credit unions, or online lending platforms. Borrowers receive a lump sum that is repaid over time...
by crispin0 | Apr 27, 2025 | Terminologies
Pre-approval is an indication from the lender that the borrower qualifies for a loan, often based on initial credit checks. It gives the borrower an idea of how much they can borrow before submitting a full application.
by crispin0 | Apr 26, 2025 | Terminologies
A prepayment penalty is a fee that a borrower must pay if they pay off their loan before the scheduled term. This penalty is meant to compensate the lender for lost interest income. It is important for borrowers to check for such clauses before taking a loan.
by crispin0 | Apr 25, 2025 | Terminologies
The principal is the original amount of money borrowed from the lender, excluding interest and fees. As repayments are made, the principal amount decreases. The borrower is required to repay the principal over time.
by crispin0 | Apr 24, 2025 | Terminologies
Refinancing a loan involves replacing an existing loan with a new one, often with better terms such as a lower interest rate. Some loan apps offer refinancing options for borrowers who want to reduce their monthly payments.
by crispin0 | Apr 23, 2025 | Terminologies
A repayment schedule is a structured plan that details when and how the borrower will repay the loan. Loan apps typically offer flexible schedules based on the loan term and borrower’s preferences.
by crispin0 | Apr 22, 2025 | Terminologies
Risk-based pricing involves adjusting the loan’s interest rate based on the borrower’s creditworthiness and risk profile. Lenders use credit scores and other financial data to determine the price.
by crispin0 | Apr 21, 2025 | Terminologies
A secured loan requires the borrower to pledge an asset (e.g., a car or home) as collateral to back the loan. If the borrower defaults, the lender can seize the collateral to recover their loss. These loans usually offer lower interest rates due to reduced risk for...
