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Loan Terminologies

Personal Loan:
A personal loan is money borrowed from a lender i.e. a bank or financial services provider (like Page Financials), for personal use. It is a loan based on the borrower's ability and promise to pay it back. There is no collateral attached to it, which means if you default on repaying the loan, the lender cannot seize your property or car to recoup the loss of your non-payment. However, other recourse actions can be taken against you when you default on your loan, this can range from presenting your guarantor's cheque to claim outstanding balance on the loan, reporting the loan as non-performing to Credit Bureaus, reporting to your employers or taking legal action against you.

Loan Agreement:
This is a written agreement between borrower (you) and lender (Page Financials), detailing the terms and conditions of the loan and the repayment of the loan. Please refer to the Provisional Offer Letter.

Loan Repayment Amount:
TThe amount of money due to be paid back monthly according toyour loan agreement. This includes management fee, interest and a portion of principal.

Loan Tenor:
The period of time set aside for a borrower to back pay the loan. Loan tenor can range from 3 - 10 months.

Interest Rate:
This is the percentage charged for the loan or use of the money being borrowed. The interest rate charged is the percentage of the total amount loaned or borrowed.

Credit History:
A record of one's ability to pay due obligations. It is a collection of how long the debt was held, how much was owed and how well one paid back the loan. A good performance on your credit history report is a good start to getting your loan approved easily.

Loan Account:
This is an account opened after the conclusion of the Loan Agreement. The account is used to track the repayments made and the outstanding balance on the loan online.

Management Fees:
It is a one-off fee payment for the processing and administration of the loan you have applied for and its incorporated into the loan repayment amount. It includes insurance fee and VAT and the borrower usually pays this.

Loan Pre-qualification:
This is a straightforward approval process that can be done online or over the phone after you have provided information about your current financial situation. Once you have pre-qualified, you will receive a Provisional Offer Letter in your mail.

Armed with the necessary loan terminology you can take the next step in making your personal loan application.  Apply Now for a Page Financials Loan today!