— Monthly Instalment
A monthly instalment is a fixed amount that a borrower pays to Home Credit each month during the loan period in lieu of the loan availed. Each monthly instalment comprises of the principal loan amount as well as an interest component.
— Due Date
The Due Date is a fixed date of each month on or before which the monthly instalment must be paid by the borrower to Home Credit, to avoid late payment charges. The borrower’s Due Date is mentioned in the Loan Summary/ Sanction Letter.
— Loan Period
Loan period is the duration for which interest on loan has been calculated.
— Late Payment Charges
Late Payment Charges are levied in case the borrower fails to pay the Monthly instalments on or before the respective due date. The details of such Late Payment Charges are mentioned in the Loan Summary/ Sanction Letter as well as on the Home Credit website.
— Down Payment
Down Payment is the part of the price of the product which the borrower pays directly to the dealer while purchasing the product. This amount is not financed by Home Credit.
— Loan summary / Sanction letter
Loan Summary is an system generated document issued by Home Credit confirming the grant of loan amount and the terms basis which the loan has been granted to the borrower. Loan Summary contains the details such as loan amount, flat rate of interest, interest amount, due date, processing fee, down payment, monthly instalment amount and number of monthly instalments.
— Flat Rate of Interest
Flat rate of interest is the rate used for calculating amount of interest charged upon the loan amount during the loan period.
— Contract number
A contract number is a unique number issued by Home Credit to the borrower in respect of the loan granted.
— Customer ID
Customer ID is a unique identification number given by Home Credit to the borrower. Every borrower shall have one unique Customer ID irrespective of the number of loans she/he has with Home Credit.
— Outstanding Balance
It is the unpaid loan amount, outstanding on a particular date along with all amounts payable by the borrower to Home Credit. Outstanding amount includes, but is not limited to principal amount, interest, fees, costs, charges, expenses etc.
— Processing fee
Processing fee is the non-refundable fee charged by Home Credit to the borrower for processing the loan application. It shall be paid by the borrower either at the time of signing the Loan Summary/Sanction Letter, or disbursal of Loan Amount, whichever is earlier.
Hypothecation is a charge created in favour of Home Credit on the product purchased on loan granted by Home Credit.
— Direct Debit/ Electronic Clearing System (ECS)/ ACH
It is an instruction given in writing by the borrower to his/ her bank to debit his/ her account with the amount of monthly instalment on or before the due date and to credit the same to the account of Home Credit.
Important Information* :
- — Sole purpose of explaining these terms is to assist the customers in understanding the specific financial terms while communicating with Home Credit. For more details, please refer to the terms & conditions of loan agreement.