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.
