Amortization is the method of repaying a loan through small
repayments occurring monthly or quarterly.
Appraisal is estimating the actual value of the property to
determine the available equity.
Certificate of Title
Certificate of title certifies to it that the property that is
offered for sale is marketable and insurable. This will need a
written opinion by an attorney or certificate issued by a title
An asset or property used as collateral can be repossessed by the
lending authority to recover any unpaid amount on auto loan.
Cosigner accepts to indemnify the borrower for non payment of auto
loan. In this regard he will pay the unpaid amount of auto loans.
Credit bureau maintains the record of all credit transactions done
by a person. It is also referred to as credit reference agency.
The credit record forms the credit file maintained by the credit
bureau and the various instances that have been recorded in it.
Depending on the credit file one will be classified as bad credit or
Defaults are the arrears in payment of debts. These too can result
into bad credit history.
Down payment is the certain percentage of the sum payable by
borrower against the auto loans. Larger down payment will secure
larger auto loan.
Interest is the cost of inflation to be paid by the borrower.
An annual charge payable by the borrower and expressed in the form
of percentage is known as interest rate.
A process whereby borrower pays off the original loan through a new
loan at different terms is known as refinancing.
Term is the period within which auto loan has been decided to be