The letter submitted by the loan applicant indicating his willingness to accept the loan as per the terms of issue mentioned in the sanction letter.

Unpaid, your past due interest.

This is a loan where the rate of interest is linked to the Prime Lending Rate (PLR) and the gains/ losses arising out of fluctuation in the interest rate are borne by the borrower. The rate on loan is generally revised at regular intervals. If there is a change in RPLR (Retail Prime Lending Rate), although the EMI (Equated monthly installment) on the home loan disbursed to the customer will not change, the tenure will increase or decrease depending on whether the interest rates rose or fell from their previous level.

A one time fee; generally non-refundable; payable before the loan is disbursed. Rates may vary from 1-2% of the loan amount.

Number of equated installments in the form of post dated cheques, paid out in advance at the time of disbursement of loan.

Penalty levied for paying installments late.

The written contract for the Sale and Purchase of the property between the Vendor (seller) and Purchaser (home buyer). Also see Conditional Agreement and Unconditional Agreement.

Paying off the principal and interest, on a loan over a period of time (Loan Term), usually by installments.

Amortization is the method or the calculation by way of which the entire principal / loan amount is paid through the tenure of the loan. This helps a customer to know what his outstanding principal is at any point in time.

This refers to the period of time for which you will owe interest and principal to your lender - the bank or HFC (housing finance company).

This is a schedule that details the principal and interest payments and the amount outstanding at any given point during the amortization period.

This refers to the entire process of applying for a loan starting with the submission of the application form used to apply for a loan, which contains relevant information about you to enable the HFC or bank to process your loan.

Fees that are paid upon application. May include charges for property appraisal and a credit report.

An estimate of the value of the property/ asset, made by a qualified professional called an "appraiser". A credit appraisal is carried out by your HFC or to determine your repayment capacity on the basis of which the loan amount and terms will be decided.

An increase in the value of a property due to changes in market conditions or for other reasons.