by crispin0 | May 13, 2025 | Terminologies
Default occurs when a borrower fails to make scheduled loan repayments as outlined in the loan agreement. If the borrower defaults on a loan, the lender may initiate collections or take legal action to recover the money owed.
by crispin0 | May 12, 2025 | Terminologies
Loan disbursement is the process of transferring the approved loan amount to the borrower’s account. This typically happens after the loan agreement is signed and the funds are made available for use. The disbursement may occur as a lump sum or in...
by crispin0 | May 11, 2025 | Terminologies
Loan eligibility refers to the criteria a borrower must meet to qualify for a loan. Online lending apps typically set these criteria, which include factors such as credit score, income level, and employment status.
by crispin0 | May 10, 2025 | Terminologies
Loan modification involves changing the terms of an existing loan, often to reduce the borrower’s monthly payments or extend the repayment period. This option is sometimes offered by online lending apps to borrowers in financial difficulty.
by crispin0 | May 9, 2025 | Terminologies
Loan refinancing involves replacing an existing loan with a new one, usually at better terms. This may include a lower interest rate, extended loan term, or reduced monthly payment. It’s often used to manage debt or improve financial conditions.
by crispin0 | May 8, 2025 | Terminologies
Loan renewal is the process of extending an existing loan’s term, often with new terms such as a different interest rate. Some online lending apps allow for loan renewals to help borrowers avoid default.
