However, for a first-timer, understanding personal loan glossaries can prove tiring. If you do not know the jargon, you may find yourself at a disadvantage when comparing offers with different lenders. Today, we have put together a list of the top 27 personal loan terminologies that every borrower should be aware of to be able to choose the best loan product.

1. Top 26 Personal
Loan Terminologies
to Know

2. Annual Percentage Rate (APR)
▰ It includes interest rates and other fees
associated with your loan.
2

3. Automatic Payment
▰ Your EMI is deducted from your account
automatically on the due date.
3

4. Arrear
▰ It refers to missed instalments.
4

5. Balance transfer
▰ It means transferring your outstanding dues
to the new lender at better terms.
5

6. Credit bureau
▰ The agency in charge of determining your
credit score.
6

7. Credit appraisal
▰ Method of conducting risk profiling of the
customer.
7

8. Co-applicant
▰ The one whose name appears on the loan
application alongside yours.
▰ They are equally responsible for paying EMIs.
8

9. Deferment
▰ Refers to a temporary break you take from
paying regular instalments.
9

10. Debt consolidation
▰ It means repaying all your high-interest loans
at once.
10

11. Lien
▰ Refers to the assets you offer to the lender as
guarantee.
▰ If you default, the lien gives the lender the
power to seize your assets.
11

12. No Objection Certificate (NOC)
▰ Issued by the lender after the successful
repayment of your loan.
12

13. Foreclosure
▰ Describes the situation in which you pay off all
your outstanding debts before the due date.
13

14. “Now that you are aware of the
key personal loan
terminologies, you can sign the
loan agreement confidently.
14
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THANKS!
Would Love to hear from you.
Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi - 110057
Tel : 18001024145
Email : customer.care@herofincorp.com
Website : https://www.herofincorp.com/
Know More : Top 26 Personal Loan Terminologies to Know