Financial Glossary

Financing used to purchase, construct, or renovate residential property, usually secured against the property itself.

Funding provided to businesses for working capital, expansion, equipment, or other commercial requirements.

An unsecured loan used for personal needs such as medical expenses, weddings, travel, or debt consolidation.

A secured loan where residential or commercial property is pledged as collateral to raise funds.

Funds used to meet a business's day-to-day operational expenses such as inventory, salaries, and supplier payments.

Credit facilities designed for micro, small, and medium enterprises, often with tailored eligibility norms.

A loan backed by collateral such as property, machinery, or other assets pledged with the lender.

A loan granted without collateral, based mainly on income, credit profile, and repayment capacity.

An interest rate that stays the same for the agreed period, keeping EMIs predictable.

An interest rate linked to a benchmark that can move up or down, changing the EMI or tenure.

A lender-approved period during which repayment of the loan may be deferred, subject to terms.

Closing a loan fully before the scheduled end of its tenure, subject to lender charges and policies.

Paying an amount over and above the scheduled EMI to reduce the outstanding principal.

A person who applies for the loan jointly with the borrower and shares repayment responsibility.

A person who agrees to repay the loan if the primary borrower is unable to meet the obligation.

The lender's formal approval of a loan, specifying the amount, rate, tenure, and conditions.

The release of the sanctioned loan amount to the borrower or a designated party.

Combining multiple debts into a single loan to simplify repayment and potentially reduce overall cost.

The movement of money into and out of a business over a period of time.

The total sales or revenue generated by a business during a financial period.

Goods and Services Tax — an indirect tax on the supply of goods and services in India.

A financial statement summarising income, costs, and expenses to show profit or loss for a period.

A statement of a business's assets, liabilities, and equity at a specific point in time.

Raising short-term funds against unpaid customer invoices to improve cash flow.

Funding used to fulfil confirmed customer purchase orders before payment is received.

Financing used to purchase plant, machinery, or equipment, typically secured against the asset.

An arrangement where suppliers allow a business to pay for goods or services at a later date.

Money owed to a business by its customers for goods or services already delivered.

Money a business owes to its suppliers for goods or services already received.

A pooled investment vehicle that invests in securities on behalf of many investors, managed by a fund manager.

Systematic Investment Plan — investing a fixed amount at regular intervals in a mutual fund scheme.

Net Asset Value — the per-unit value of a mutual fund scheme on a given day.

Ownership in a company, typically represented by shares, with returns linked to company performance.

A mutual fund investing primarily in fixed-income instruments such as bonds and government securities.

The overall collection of investments held by an individual or institution.

Spreading investments across assets or sectors to reduce the impact of any single underperformer.

An assessment of an investor's ability and willingness to take investment risk.

The profit realised when an asset is sold for more than its purchase cost.

A share of a company's or fund's earnings distributed to its shareholders or unit holders.

How an investment portfolio is distributed across asset classes such as equity, debt, and cash.

The rate at which prices rise over time, reducing the purchasing power of money.