3. Definitions
| No: 41068291 | Date(g): 22/7/2020 | Date(h): 2/12/1441 | Status: In-Force |
Annual Percentage Rate (APR) | The discount rate at which the present value of payments and installments that are due from the Borrower, representing the Total Amount Payable by the Borrower, equals the present value of all payments of the Amount of Financing available to the Borrower on the date on which the Financing amount or the first payment thereof is available to the Borrower (As per Article 81 of Implementing Regulations of the Finance Companies Law). |
| Annual Equivalent Rate (AER) | The rate for a savings account or investment product that has more than one compounded interest/profit during the year. It is calculated under the assumption that any interest/profit paid is included in the principal payments balance and the next interest/profit payment will be based on the slightly higher account balance due to adding the interest/profit paid on the principal payments balance. |
| Credit card purchase rate | The rate applied to transactions (cash or credit) made with a credit card. The rate only applies to balances that are not paid in full by the end of the billing cycle. |
| Financing amount | Amount of on balance sheet loan granted to the customer. |
| Maturity | Contractual maturity of on balance sheet loans granted to customers: This is the final payment date of a loan at which point the principal and all interests/profits are due to be paid. Contractual maturity of savings products: This is the final payment date of savings products at which point the principal and interests/profits owed to the customer are due to be paid. |
| Monthly payment amount | Installment amount the customer is obliged to pay to the Bank or Finance Company each month until the debt is fully repaid. |
| Minimum payment amount | Lowest amount the customer can pay on the credit card to avoid late payment penalties. Minimum payments are calculated as percentage of the outstanding balance plus any fees that have been added. |
| Months until balance repaid | Number of months remaining if minimum repayment on credit card is made by customer each month. |
| Property market value | Price negotiated between a willing buyer and a willing seller in an arm's length transaction after fulfilling valuation criteria set by the bank. The value may not be the current listing price or the amount of the most recent offer on the property. |
| Loan to Value Ratio | Ratio of a loan provided by the Bank or Finance Company to the value of a property purchased and determined as property market value. |
| Payment type | Interest/profit only payments or, both principal and interest/profit payments or else. |
| Early payment charge | A fee the customer will be required to pay to a lender if the customer pays off a loan early and before the scheduled maturity term of the credit facility, also sometimes referred to as a Redemption Penalty. |
| Deposit amount | Amount deposited with the Bank in savings or investment products. |