Loan related terms:
1. Lender (borç veren): The person who gives the loan, is called a lender.
2. Borrower (borç alan): Borrower is the person who receives the loan.
3. Principal amount (alınan borç miktarı): The amount which is borrowed is called the principal amount. Interest is calculated on the principal.
4. EMI (sabit aylık ödeme): Equated monthly installment (EMI): A fixed payment made by a borrower to a lender at a specified date each month.
5. KYC (müşteri bilgileri): Know your customer (KYC): KYC enables banks to know and understand their customers better. KYC documents include: Identity proof, residential proof, age proof, and copy of bank pass book / bank statement.
6. Eligibility criteria (uygunluk kriteri): Eligibility criteria lists certain norms that are needed for you to qualify for getting a loan. The documents may vary for different loan products. Usually, eligibility is dependent on the borrower's salary, number of dependents, whether the borrower has other loans to repay, etc.
7. Tenure (süre): time duration. Loan tenure means: The time period for which the loan is approved. For example: 60 months.
8. Disbursement (ödeme): to pay out money.
9. Interest rate (faiz oranı):
Interest means: A fee paid for the using someone else's money.
An interest rate is charged on the amount that has been borrowed. It is paid by the borrower to the lender.
10. Down payment (ön ödeme): It is the initial (upfront) payment that needs to be made when taking a loan.
E. g. If a person is taking a home loan, then he or she may need to make an initial down payment which could be between 15 to 30 per cent.
11. Processing fee (işlem ücreti): This is the fees that the bank charges to process the loan.