List of Terms 

Here is a list of loan and finance terms with definitions:

1. APR – Annual Percentage Rate: This is the annual rate of interest charged on a loan, including fees and other costs associated with the loan.
2. Amortization – The process of paying off a loan through equal, periodic payments that cover both principal and interest.
3. Collateral – Property or other assets that a borrower pledges to secure a loan. If the borrower fails to repay the loan, the lender can seize the collateral to satisfy the debt.
4. Credit score – A numerical value assigned to a borrower based on their credit history and other factors. The score is used by lenders to assess the borrower’s creditworthiness.
5. Debt-to-income ratio – The ratio of a borrower’s debt payments to their income. This is used by lenders to assess the borrower’s ability to repay the loan.
6. Default – Failure to make loan payments as agreed. This can result in the lender taking legal action to recover the debt.
7. Equity – The difference between the value of a property or asset and the amount owed on any loans secured against it.
8. Interest – The cost of borrowing money, usually expressed as a percentage of the loan amount.
9. Lien – A legal claim on a borrower’s property, used as collateral to secure a loan.
10. Principal – The amount of money borrowed, excluding interest and fees.
11. Refinance – The process of replacing an existing loan with a new loan that has more favorable terms, such as a lower interest rate or longer repayment period.
12. Secured loan – A loan that is backed by collateral, such as a car or home.
13. Unsecured loan – A loan that is not backed by collateral and is based on the borrower’s creditworthiness.
14. Variable interest rate – An interest rate that can fluctuate over time based on market conditions.
15. Repayment term – The length of time over which a borrower will make loan payments.
16. Grace period – A period of time after the due date of a loan payment during which the borrower is not charged a late fee.
17. Installment loan – A loan that is repaid in equal installments over a fixed period of time.
18. Prepayment penalty – A fee charged to a borrower for paying off a loan before the end of the term.
19. Origination fee – A fee charged by a lender for processing a loan application.
20. Co-signer – A person who agrees to take joint responsibility for a loan with the borrower, and whose creditworthiness is also considered by the lender.
21. Balloon payment – A large lump-sum payment that is due at the end of a loan term, usually associated with certain types of loans, such as auto loans or mortgages.
22. Default rate – The interest rate that applies to a loan after a borrower defaults on the loan.
23. Debt consolidation – The process of combining multiple debts into a single loan, often with a lower interest rate and a longer repayment term.
24. Late fee – A fee charged to a borrower for making a loan payment after the due date.
25. Payday loan – A type of short-term loan that is typically due on the borrower’s next payday, often with very high interest rates.
26. Securitization – The process of pooling together loans or other financial assets, and then selling them to investors as securities.
27. Underwriting – The process of evaluating a borrower’s creditworthiness and other factors to determine whether to approve a loan application.
28. Variable-rate loan – A loan with an interest rate that can change over time, based on market conditions or other factors.
29. Cosigner release – The process of removing a cosigner’s name from a loan once the borrower has made a certain number of on-time payments.
30. Loan servicer – The company that manages a loan on behalf of the lender, including collecting payments and providing customer service to borrowers.
31. Adjustable-rate mortgage (ARM) – A type of mortgage loan with an interest rate that can change periodically based on market conditions.
32. Annual fee – A fee charged annually by a credit card issuer, typically for access to certain perks or rewards.
33. Appraisal – An evaluation of the value of a property or asset, used to determine the amount of a loan or other financial transaction.
34. Bankruptcy – A legal process in which an individual or business declares that they are unable to repay their debts, and their assets are liquidated to repay creditors.
35. Capital – The funds or assets that a business or individual has available for investment or other financial transactions.
36. Credit report – A report that includes a borrower’s credit history, credit score, and other financial information, used by lenders to assess creditworthiness.
37. Debt consolidation loan – A loan used to pay off multiple debts, usually with a lower interest rate and a longer repayment term than the original debts.
38. Debt management plan – A program designed to help individuals pay off their debts through budgeting, negotiation with creditors, and other strategies.
39. Default judgment – A legal ruling against a borrower who has failed to repay a debt, resulting in seizure of assets or other actions to recover the debt.
40. Equity loan – A loan that uses the borrower’s home or other property as collateral, typically with a lower interest rate than unsecured loans.
41. Factoring – The process of selling accounts receivable or other assets to a third party at a discount in order to obtain cash.
42. Good faith estimate (GFE) – An estimate of the total costs associated with a mortgage loan, provided by the lender to the borrower.
43. Interest-only loan – A loan in which the borrower pays only the interest on the loan for a set period of time, typically followed by a balloon payment or a conversion to an amortized loan.
44. Joint account – A bank account or other financial account held by two or more individuals.
45. Loan origination – The process of creating a new loan, including underwriting, approval, and documentation.
46. Mortgage insurance – Insurance that protects the lender in the event that the borrower defaults on a mortgage loan.
47. Prime rate – The interest rate charged by banks to their most creditworthy customers, often used as a benchmark for other loan rates.
48. Secured credit card – A credit card that is secured by a deposit, typically used by individuals with poor or limited credit history.
49. Term loan – A loan with a fixed repayment term, typically used for a specific purpose such as purchasing equipment or expanding a business.
50. Title loan – A type of loan in which the borrower uses their vehicle title as collateral, often with high interest rates and short repayment terms. 
51. Variable annuity – An insurance product that pays out a variable amount based on the performance of an underlying investment portfolio.
52. Secured loan – A loan that is secured by collateral, such as a car or house, which can be repossessed by the lender in the event of default.
53. Unsecured loan – A loan that is not secured by collateral, typically with higher interest rates than secured loans.
54. Credit score – A numerical representation of a borrower’s creditworthiness, based on their credit history and other factors.
55. Refinancing – The process of replacing an existing loan with a new loan, often with lower interest rates or better terms.
56. Debt-to-income ratio – A measure of a borrower’s ability to repay debts, calculated by dividing total monthly debt payments by monthly income.
57. Default – Failure to repay a loan or other financial obligation, resulting in penalties, legal action, or other consequences.
58. Collateral – Property or assets pledged as security for a loan, which can be seized by the lender in the event of default.
59. Credit limit – The maximum amount that a borrower can borrow or charge on a credit card or other credit account.
60. Home equity line of credit (HELOC) – A type of loan that uses the borrower’s home equity as collateral, typically with a variable interest rate.
61. Installment loan – A loan with a fixed repayment schedule, typically with equal payments over a set period of time.
62. Interest rate – The cost of borrowing money, expressed as a percentage of the total loan amount.
63. Overdraft – A financial transaction in which a bank account is overdrawn, resulting in fees or penalties.
64. Prepayment penalty – A fee charged to borrowers who pay off a loan before the end of the loan term.
65. Prime borrower – An individual or business with a high credit rating and a low risk of default, often eligible for lower interest rates or better loan terms.
66. Principal – The amount of money borrowed, not including interest or fees.
67. Repayment term – The length of time over which a loan must be repaid, typically ranging from a few months to several years.
68. Subprime borrower – An individual or business with a low credit rating and a high risk of default, often charged higher interest rates or subject to stricter loan terms.
69. Title insurance – Insurance that protects against loss or damage resulting from defects in a property title.
70. Usury – The illegal practice of charging excessive interest rates on loans or other financial transactions.
71. Business line of credit – A type of loan that allows businesses to borrow money on an as-needed basis, up to a predetermined credit limit.
72. Commercial loan – A loan designed for businesses, typically with higher loan amounts and longer repayment terms than personal loans.
73. Credit score – A numerical representation of a business’s creditworthiness, based on its credit history and other factors.
74. Debt-to-equity ratio – A measure of a business’s leverage, calculated by dividing total debt by shareholder equity.
75. Debt service coverage ratio (DSCR) – A measure of a business’s ability to repay debt, calculated by dividing its net operating income by its debt payments.
76. Equipment financing – A type of loan used to purchase or lease equipment for a business, with the equipment serving as collateral for the loan.
77. Factoring – The process of selling accounts receivable to a third-party company in exchange for immediate cash.
78. Inventory financing – A type of loan used to purchase inventory for a business, with the inventory serving as collateral for the loan.
79. Invoice financing – A type of loan that allows businesses to borrow money based on outstanding invoices, with the invoices serving as collateral for the loan.
80. Merchant cash advance – A type of loan that provides businesses with immediate cash in exchange for a portion of future credit and debit card sales.
81. Personal guarantee – A legal agreement in which a business owner or other individual agrees to be personally responsible for a loan if the business is unable to repay it.
82. SBA loan – A loan guaranteed by the Small Business Administration, often with lower interest rates and more favorable terms than traditional business loans.
83. Secured business loan – A loan that is secured by collateral, such as equipment or real estate, which can be repossessed by the lender in the event of default.
84. Term loan – A loan with a fixed repayment schedule and a set maturity date, often used for larger business purchases or investments.
85. Unsecured business loan – A loan that is not secured by collateral, typically with higher interest rates than secured business loans.
86. Working capital loan – A type of loan used to finance a business’s day-to-day operations, such as inventory purchases or payroll expenses.
87. Amortization – The process of repaying a loan over time, with each payment consisting of both principal and interest.
88. Auto loan – A loan used to purchase a vehicle, typically with a fixed interest rate and repayment term.
89. Co-signer – An individual who agrees to be responsible for a loan if the primary borrower is unable to repay it.
90. Credit report – A detailed record of an individual’s credit history, including credit accounts, payment history, and credit inquiries.
91. Debt consolidation loan – A type of loan used to combine multiple debts into a single loan, often with lower interest rates or better terms.
92. Home equity loan – A loan that allows homeowners to borrow against the equity in their home, typically with a fixed interest rate and repayment term.
93. Installment loan – A loan with a fixed repayment schedule and a set number of payments, often used for larger purchases such as furniture or appliances.
94. Interest rate – The percentage charged by a lender for borrowing money, typically expressed as an annual percentage rate (APR).
95. Payday loan – A short-term, high-interest loan designed to be repaid on the borrower’s next payday.
96. Personal loan – A loan used for personal expenses, such as home improvements or medical bills, typically with a fixed interest rate and repayment term.
97. Prepayment penalty – A fee charged by lenders for paying off a loan early.
98. Secured loan – A loan that is backed by collateral, such as a car or home, which can be repossessed by the lender in the event of default.
99. Unsecured loan – A loan that is not backed by collateral, typically with higher interest rates than secured loans.
100. Variable rate – An interest rate that can change over time based on market conditions or other factors.
101. Credit score – A numerical representation of an individual’s creditworthiness, based on their credit history and other factors.