Financial Glossary

The 2022 RBI framework that governs every loan app and digital lender in India — mandating LSP-lender disclosure, KFS provision before disbursal, and strict borrower-data protection.

An RBI Master Direction that lays down mandatory borrower-protection rules for every regulated bank and NBFC — covering transparent disclosure, grievance redressal timelines, and recovery agent conduct.

An RBI-mandated single-page summary of a loan's actual cost — APR, processing fee, prepayment charges, late fees — that every regulated lender must provide before disbursal so borrowers can compare offers like-for-like.

Identity verification process required by RBI for all financial transactions.

A 3-digit number (300–900) that represents your creditworthiness.

A detailed document showing your entire credit history — all loans, credit cards, payment history, inquiries, and defaults.

The percentage of your credit card limit that you are currently using.

A credit check that happens when you formally apply for a loan or credit card.

A loan where the borrower has stopped making payments for 90+ days.

A credit check that does NOT affect your CIBIL score.

A person who applies for a loan jointly with you.

Total monthly debt payments divided by gross monthly income.

The percentage of your monthly income that goes toward EMIs and fixed obligations.

An RBI-regulated entity that shares a customer's financial data — bank statements, GST returns, mutual fund holdings — between regulated financial institutions only after explicit consent, governed by India's Account Aggregator framework.

A company or platform that markets loans on behalf of an RBI-registered NBFC or bank — many loan apps in India operate this way, meaning the app brand is not the actual lender.

A specialised NBFC regulated by RBI (formerly by the National Housing Bank) that provides loans for home purchase, construction, renovation, and against property.

A platform that provides loan-origination, servicing, or collection services for an RBI-registered lender under the 2022 RBI Digital Lending Guidelines — distinct from a Direct Selling Agent but functionally similar to borrowers.

An RBI-regulated NBFC that provides small-ticket unsecured loans (typically ₹50,000–₹1,25,000) to low-income borrowers and rural households, often using joint-liability group structures.

Non-Banking Financial Company — a company registered with RBI that provides banking services (loans, deposits) but is NOT a bank.

Securities and Exchange Board of India — regulates the securities and capital markets in India.

A detailed table showing the breakup of each EMI into principal and interest components, along with the outstanding balance after each payment.

The total yearly cost of a loan expressed as a percentage.

Moving your existing loan from one lender to another offering a lower interest rate.

Equated Monthly Instalment — the fixed amount you pay every month to repay a loan.

Interest calculated on the ORIGINAL loan amount throughout the tenure, not the reducing balance.

The total duration of the loan in months or years.

The percentage of the asset value that the lender will finance.

A grace period during which you don't have to pay EMIs.

An unsecured loan (no collateral required) given based on your income, CIBIL score, and repayment capacity.

Paying off your loan (partially or fully) before the scheduled tenure ends.

A one-time charge by the lender for processing your loan application.

The standard method used by banks to calculate EMI interest.

Secured loans require collateral (home loan = property, car loan = vehicle, gold loan = gold).

TARA AI Loan Agent is India's first agentic AI loan advisor — a product from GoCredit that scans 100+ RBI-registered lenders, predicts pre-approval for each borrower's profile, and submits loan applications on the borrower's behalf in roughly 60 seconds. Free, soft-enquiry only, Hindi and English.

An RBI-mandated officer at every regulated bank and NBFC who handles borrower grievances as the first formal point of contact, with 7-day acknowledgement and 30-day resolution timelines.

A senior grievance escalation point at every RBI-registered lender, used when the Grievance Redressal Officer fails to acknowledge or resolve a borrower complaint within RBI-mandated timelines.

A free, online, RBI-operated grievance redressal mechanism whose orders are legally binding on the bank or NBFC against which a complaint is filed.

Illegal practices by loan recovery agents including: calls before 8 AM or after 7 PM, threatening or abusive language, contacting family or employer, physical intimidation, and public shaming.

RBI's dedicated online portal (sachet.rbi.org.in) for reporting unauthorised lending entities, fake loan apps, and suspected investment fraud directly to the central bank's surveillance team.

An interest rate benchmark linked directly to an external rate like RBI's repo rate.

Marginal Cost of Funds Based Lending Rate — a benchmark rate set by each bank to determine loan interest rates.

India's central bank and top financial regulator.

The interest rate at which RBI lends money to commercial banks.

An AI Loan Advisor is an agentic AI system that scans multiple RBI-registered lenders on a borrower's behalf, predicts pre-approval, and submits applications to the cheapest match — replacing the loan-marketplace browsing-and-comparison workflow with a single conversation.

An AI Personal Finance Assistant is a software agent that ingests a user's banking, credit, and spending data to give personalised, real-time guidance on loans, EMI affordability, CIBIL improvement, investments, and tax — typically delivered through a chat or voice interface instead of static reports.