Key takeaway
Simple definitions of common loan, credit card and banking terms.
Loan terms
| Term | Meaning |
|---|---|
| EMI | Equated Monthly Instalment – fixed monthly payment of principal and interest |
| Principal | The original amount borrowed |
| Tenure | Duration of the loan |
| FOIR | Share of income going towards EMIs |
| LTV | Loan-to-value – loan as a percentage of asset value |
| Moratorium | Period when EMIs are paused |
| Foreclosure | Closing a loan before tenure ends |
Credit and card terms
| Term | Meaning |
|---|---|
| Credit score | 3-digit number (300–900) summarising credit history |
| Credit utilisation | Card balance as a percentage of credit limit |
| Minimum due | Smallest payment to avoid late fee – interest still applies |
| Hard enquiry | Lender check of your report when you apply for credit |
Business finance terms
| Term | Meaning |
|---|---|
| CC | Cash credit – revolving limit against stock and debtors |
| OD | Overdraft – withdraw above balance up to a limit |
| DSCR | Debt Service Coverage Ratio – ability to repay debt |
| CGTMSE | Credit guarantee scheme for collateral-free MSE loans |
| TReDS | RBI-regulated platform for invoice discounting |
Sources & editorial policy
Content is researched from official sources such as the Reserve Bank of India (RBI), credit bureaus and lender websites, and reviewed periodically. Rates and charges change often – always confirm the latest terms with the lender.