EMI: EMI is Equated Monthly Instalment which is the monthly amount that a customer needs to pay to the financial institution towards the servicing of his/her loan. The amount consists of payment towards interest and principal
Pre-EMI: This is the term used in case of partially disbursed loan. Pre-EMI is the monthly amount that a customer needs to pay to the financial institution towards servicing of his/her partially disbursed loan. This amount consists of payment towards interest only
KYC: KYC known as Know Your Customer are set of documents that are collected by a financial institution towards confirmation of identity and the place of residence of the applicant. These may include Aadhar card/Voter id/Passport/Pan Card/driver license etc to help establish identity and latest bank statement/electricity bill/telephone bill/ration card that help establish proof of residence
CAM: CAM is called Credit Appraisal Memo which is the output of credit appraisal done by the credit team tabulated into quantitative and qualitative parameters. The memo contains the credit decision whether the loan can be given to the customer or not and if found eligible, then it provides details of loan amount and loan tenor
LTV: LTV is called Loan to Value ratio which is calculated as loan amount divided by the market value of the property (excluding stamp duty and registration charges)
LCR: LCR is called Loan to Value ratio which is calculated as loan amount divided by the total agreement value of the property including stamp duty and registration charges
IIR: IIR is called Instalment to Income ratio and is calculated as monthly instalment to be paid towards loan payment divided by monthly income of the applicant. This helps to understand how much portion of his monthly income an applicant needs to set aside so as to service the home loan
FOIR: FOIR is called fixed obligation to income ratio and is calculated as total fixed obligations an applicant has from all lenders divided by his monthly income. This helps to understand the applicant’s total indebtedness and whether he would be able to set aside a portion of his income to service new loan and at the same time save enough for his monthly expenses and savings
LAM: LAM is called Legal Appraisal Memo which is the output of the legal appraisal of the property done by the empanelled lawyer and contains detailed overview of the legal aspects of the property to be financed including encumbrance, flow and evidence of title etc. This report is extremely important as it helps to confirm that the property has clear and marketable title
TAM: TAM is called Technical Appraisal MEMO which is the output of the technical appraisal of the property done by the technical valuer/certified engineer and contains detailed overview of the technical aspects of the property to be financed including construction as per approved plan, approval from competent authorities, stage of construction, structural stability, deviations if any
PDC: PDC is called Post Dated Cheque which is written by the payer for a payment in future. The borrower can service his monthly instalments by submitting specified number of PDCs in advance and can replenish them as they get exhausted. However, in order to avoid inconvenience and be efficient, ECS/ACH payment are increasingly used by most of the borrowers towards repayment
ECS: ECS is called Electronic Clearing System. ECS is an electronic mode of funds transfer from one bank account to another. A home loan borrower can sign an ECS mandate which enables him to pay monthly instalments to the financial institution electronically without the need of a cheque
ACH: Automated Clearing House. ACH are electronic payments that are created when the customer gives an originating institution, corporation, or other customer (originator) authorization to debit directly from the customer's checking or saving account for the purpose of bill payment. A home loan borrower can sign an ECS mandate which enables him to pay monthly instalments to the financial institution electronically without the need of a cheque