Acceptance Letter
A letter from the applicant indicating his willingness to accept the loan after the loan is approved by the banking institution.
Application Form
A form used to apply for loan.
Appraisal/valuation report
A written analysis of the estimated value of real estate prepared by a licensed Valuer/Appraiser.
Base Lending Rate (BLR)
A minimum interest rate calculated by financial institutions based on a formula which takes into
account the institutions’ cost of funds and other administrative costs.
Commitment Fee
A fee charged by the financial institution for setting aside funding that are not utilised by
the borrower. Usually only applicable to overdraft facility.
Default
Failure to pay the monthly instalment/interest payments to financial institutions when due.
Disbursement Fees
Various type of fees such as registration of charge fee, land search fee, bankruptcy search
fee incurred by financial institutions and solicitors attending to the loan documentation
in relation to the loan which are payable by the borrower.
Documentation
A set of agreements, forms, and other documents to be signed in connection with a
loan. The documentation will form a full set of records for the loan.
Downpayment
An initial payment made by the buyer to the seller of the house.
Financial Institutions
All commercial banks and finance companies licensed under BAFIA 1989 and Islamic banks
licensed under the Islamic Banking Act 1983.
Flat Rate
A term used to describe interest that is charged
as a fixed percentage of the loan amount
throughout the tenure of the loan. The flat
repayment amount is usually determined before
the commencement of the repayment programme.
For example, interest charged on a RM10,000
loan at a flat rate of 10% per annum is RM1,000
annually until the loan is fully settled.
Floating Rate Loan
A term used to describe a loan, where the
interest charged fluctuates due to the rise and
fall of a certain indicator such as the Base
Lending Rate.
Foreclosure
Legal action available to the financial institution
for recovering outstanding sums owed by a
borrower who has defaulted on his/her loan.
The property pledged by the borrower to secure
the loan is sold and the proceeds of the sale used
to settle the outstanding loan amount.
Graduated Payment
A scheme that allows the borrower the
flexibility to pay a lower instalment sum at the
beginning of the loan tenure before progressing
onto a higher instalment sum as the borrower’s
purchasing power improves.
Gross Monthly Household Income
The sum of gross monthly pay of all working
family members before deducting income tax,
Sosco, EPF, loan instalment or other deductions
plus any additional income from overtime,
commissions and other sources.
Guarantor
Person or entity who is legally bound to pay a
debt incurred by the borrower if that borrower
fails to pay.
Homeowners Insurance
An insurance policy that combines liability
coverage for a homeowner together with
protection from damages caused by wind,
fire, vandalism and other risks.
Interest Rate
The amount charged by the lender to the
borrower for borrowing a sum of money
expressed as percentage of sum borrowed.
Late Charge
A penalty charged by financial institution for
not paying instalment due on time.
Letter of Administration
A Grant of representation issued by the High
Court to a person to allow him to administer the
estate of the deceased who died without a will.
Loan Tenure
Number of years taken to fully repay the loan
principal and interest as agreed under a specific
repayment programme.
Margin of Financing
The loan amount granted by the financial
institution, expressed as a percentage of the
value of property pledged to secure the loan.
Mortgage Reducing Term Assurance (MRTA)
A term insurance which reduces over the
tenure of the loan. This form of insurance is
used to provide cover for the outstanding
loan amount, in the event of death or total
permanent disability of the insured. MRTA is
normally calculated to meet the outstanding
loan amount.
Outstanding Loan
Remaining loan not yet paid, including interest
and other charges.
Overdraft
A type of credit facility granted to the eligible
current account holder. The borrower is allowed
to issue cheques exceeding the credit balance
in the current account but subject to a certain
pre-approved limit granted by the financial
institution.
Power of Attorney
A formal legal document giving authority to one
person to act on behalf of another person.
Prepayment
Payment of all or part of a loan before maturity.
Prepayment Penalty
A fee charged by financial institutions for
early payment of loan in full. The fee charged
is usually based on a percentage of the loan
amount or “X” months of interest.
Principal
The amount borrowed from financial institutions,
excluding interest and other charges.
Property
Refers to landed properties (like house, apartment,
condominium) and land (like bungalow lots).
Refinancing
The process of paying off a portion or the
entire amount of the existing loan with the
intention of obtaining another loan from the
same or another financial institution.
Sale and Purchase Agreement
A written contract signed between the buyer
and seller stating amongst others, the terms and
conditions under which a property will be sold.
Security
Real or personal property that guarantees the
repayment of a loan. The borrower risks losing
the property if the loan is not repaid.
Term Loan
A loan which is repaid through regular periodic
payments, usually over a period of time, for
example 10 years.
Title
A legal document establishing the right of
ownership on a property.
Tuesday, June 8, 2010
Subscribe to:
Post Comments (Atom)
Are you tired of seeking loans and mortgages from banks? Have you been
ReplyDeleteturned down constantly by your banks and other financial institutions
due to bad credit? Are you about loosing your home due to financial
constraints? Global Lenders Inc is here to set you free from debt. For
immediate enquires you can contact us via email
powerfinance7@gmail.com
LOAN APPLICATION FORM
**********************
1) Full Name:.....
2) Gender:........
3) Loan Amount Needed :...
4) Loan Duration:...............
5) Country:.......
6) Home Address:..
7) Mobile Number:.....
8) Fax Number:......
9) Occupation:....
10) Monthly Income:......
11) Salary Date:....
12) Purpose of loan;...
13) Where did you get our loan advertisement:....
14)Contact email:........
Awaiting your swift response.
May Allah bless you.
IBRAHIM MUSA
Leverage Pvt Ltd.
Associate Director
power Financial Service Pvt.
Contact Us At :powerfinance7@gmail.com
Hope to see more informative advice on the topic of housing loan soon from you again.
ReplyDeleteFUNDING CIRCLE INC(Fundingcircleplc@yahoo.com)
ReplyDeleteHello am Nathan Davidson a businessman who was able to revive his dying business through the help of a Godsent lender known as Jason Raymond the CEO of FUNDING CIRCLE INC. Am resident at 1542 Main St, Buffalo, NY.. Well are you trying to start a business, settle your debt, expand your existing one, need money to purchase supplies. Have you been having problem trying to secure a Good Credit Facility, I want you to know that FUNDING CIRCLE INC. is the right place for you to resolve all your financial problem because am a living testimony and i can't just keep this to myself when others are looking for a way to be financially lifted.. I want you all to contact this Godsent lender using the details as stated in other to be a partaker of this great opportunity Email: Fundingcircleplc@yahoo.com OR Call/Text +14067326622
Testimony of financial breakthrough from GOD through the help of Funding Circle Loan INC. (fundingloanplc@yahoo.com OR Call/Text +14067326622)...
ReplyDeleteHi I'am Evelyn Russell resident at 808 NE 19th St Oklahoma City, I am a single mother blessed with 2 daughters. For a while now I have been searching for a genuine loan lender who could help me with a loan as I no longer have a job, all I got were hoodlums who made me trust them and at the end they took my money without giving me any loan, my hope was lost, I got confused and frustrated, it became difficult for my family to feed with a good meal, I never wanted to have anything to do with any loan lending companies on the internet again. Not until I met a Godsent loan lender that changed my life and that of my family Through the help of a fellowship member "a lender with the fear of God in him Mr JASON RAYMOND, he was the man God sent to elevate my family from suffering. At first I thought it wasn’t going to be possible due to my previous experience until I received my loan worth $135,000.00 USD in less then 24hours. So my advise to anyone out there genuinely in need of a loan is to contact Funding Circle Loan INC through this official email:- fundingloanplc@yahoo.com OR Call/Text +14067326622 and be financial lifted.