Glossary

Collateral:

Guarantee offered to obtain a loan. Collateral is any valuable asset which includes home, real estate, accounts receivable or any other asset.

Cosigner:

Any person who takes equal guarantee for the repayment of your loan.  Cosigner is usually required when the credit status of the applicant is not promising.

Down payment:

The amount of money which has to be deposited initially to bring down the cost of financing.
 
Equity:

The value of the asset deduced by subtracting the debts registered against the property from its market value.

Fixed rate:

A rate of interest that does not changed over the term of the loan or extension.

Loan term:

A time period within which the loan reaches its maturity. The full principal amount of the loan is to be repaid by the maturity date.

Secured loan:

A loan for which a guarantee is required for approval.

Blue book:

Is one of the standard reference used to find out the value of used vehicles. A blue book typically contains the whole sale value and retail value of each vehicle.

Unsecured loan:

A personal loan that is not secured by any assets.