Getting a loan has always been more challenging than today. Private lending companies and banks are now only one tap and click away from internet use. You do not have to exert any effort or ample time to apply for a loan. However, admit it or not, as you only focus on getting your loan approved, you tend to overlook some lending terminologies you need help understanding. Thus, before you get into serious debt, here’s a list of necessary lending jargon you must know. 

1. SEC

SEC, or Securities and Exchange Commission, is the administrative body in charge of regulating and supervising the finance sector in the Philippines. They are responsible for formulating policies and commendations about the issues concerning the securities market. In terms of lending, the SEC ensures that lenders operate legally while protecting the public against exploitation and other unlawful practices. To ensure you won’t be scammed, you can always visit the official SEC website for the complete list of registered lending companies in the Philippines. 

Vidalia Lending Corp. adheres to Republic Act No. 10173 or the Data Privacy Act of 2012 and is regulated by the Securities and Exchange Commission (SEC) with License No. CS200813771 and COA No. 279 were issued in October 2008. 

2. Principal

In finance, the term “principal” can convey many meanings. In talks of a loan, “principal” can be defined as the amount of money being lent to you without interest. However, note that it could also mean your loan balance after you make a payment. 

3. Interest Rate

The interest rate is also known as the percentage of the principal or the cost of your loan. Lending companies offer different interest rates, and you must compare them before you avail of their loan offer.

4. Term Loan

The most common type of loan is called a term loan. Being on a term loan means agreeing to make regular payments to your lender for a specific timeframe. 

5. Assets

Assets are valuable things you own that you can use as collateral if you apply for a secured loan. A secured loan requires collateral to assure your lender that you will be repaying the borrowed money, but in return, they shall allow your loan a  lower interest rate.

6. Liabilities

In simple words, liabilities are a person’s or company’s financial obligations or debts.  

7. Repayment Period or Tenor

Tenor is the agreed time for the borrower to repay their loan.

8. APR

APR, or Annual Percentage Rate, equals the estimated amount of interest you need to pay plus the exact amount of the borrowed money. So, as you know, APR will depend on the lending company and the type of loan you are applying for.

9. Loan Calculator

Lending companies, especially those you can find online, provide a loan calculator. You can use the loan calculator to estimate your loan based on the terms you want and the lending company’s interest rate. 

10. Credit Score

A credit score shows the creditworthiness of an individual. The higher your score, the higher the chance of securing a better interest rate.

11. Prepayment Penalty

Prepayment Penalty is also known as early repayment charges. This penalty applies when you repay your loan earlier than the agreed maturity date. 

12. Default Charges

You will have a default charge if you miss a scheduled repayment to your lender. This means you will get an increase in the amount of loan you need to repay. 

Vidalia Lending has helped thousands of customers with their financial problems since 2008. If you want to apply for a loan, you can check our Loan page and choose a loan that will fit your needs. Borrow money today and get fixed regular payments with no hidden fees. If you have more questions, visit our Help Center for more details.

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