Financial Glossary

A Non-Banking Financial Company — a company registered with the RBI that provides loans and financial services but does not hold a full banking licence. Recapita Finance is an RBI-registered NBFC.

Equated Monthly Instalment — the fixed amount you repay each month, made up of principal and interest, until the loan is fully repaid.

The original loan amount you borrow, before interest is added.

The cost of borrowing, expressed as a percentage of the principal per year. It may be fixed or floating.

The length of time over which you repay the loan, usually in months or years.

An asset (such as gold or property) pledged against a secured loan. The lender can recover dues from it if the loan is not repaid.

The ratio of the loan amount to the value of the pledged asset. For example, a gold loan may be offered at a percentage of the gold's assessed value.

A one-time charge to cover the cost of evaluating and processing your loan application.

Repaying part or all of your loan before the scheduled tenure ends, which can reduce your total interest.

A number (typically 300–900) from a credit bureau like CIBIL that reflects your creditworthiness based on past borrowing and repayment behaviour.

Know Your Customer — the regulatory process of verifying your identity and address using documents such as Aadhaar and PAN before opening an account or sanctioning a loan.

The funds a business needs for its day-to-day operations, such as paying suppliers and managing inventory.

Systematic Investment Plan — investing a fixed amount in a mutual fund at regular intervals to build wealth over time.

The release of the sanctioned loan amount to your bank account once your application is approved.

An agreed period during which you are not required to make repayments — interest may still accrue.

An independent authority appointed by the RBI to resolve customer complaints against banks and NBFCs that remain unresolved.