Amortization
Calculates the entire loan payment including interest on the outstanding balance which is to be paid off at the end of a fixed period.

Annual Percentage Rate (APR)
APR is the interest rate charged on the loan. It is the cost of credit on a yearly basis expressed as a percentage.

Collateral
Property put as a security against the amount borrowed.

Creditworthiness
Past and future ability of a borrower to repay debts.

Dealer Charges
Amount charged for features sold separately by auto lender such as undercoating or service offered in warranty period.
Default
Failure to repay a loan or failure to meet the terms of the loan agreement

Down Payment
Amount paid by the customer in cash or trade-in value to get an auto loan in order to finance the remaining of the purchase price.

Equity
Difference between market value of a property and the outstanding mortgage on it.

Late Payment
A payment made later than agreed upon

Loan Application
Is the primary step in obtaining a loan. It involves filling of the loan application form.

Loan Calculator
It determines the amount of monthly payment that a borrower has to pay on the loan borrowed.

Prepayment Penalty
Penalty imposed by the bank on the early payments.

Term
Specified period of time for which the loan is provided by the lender.

Title
A document which gives evidence of an individual’s ownership of a property

Upfront Costs
Any fees or charges that are collected in advance, before a loan is advanced.