Aug 19, 2025
Learn Key Loan Terminology in simple words. Understand principal, EMI, APR, credit score, collateral, and more. Easy guide for borrowing!
Key Loan Terminology: Simple Guide for Beginners
Principal – The actual amount you borrow.
EMI – Your monthly repayment (principal + interest).
APR – The true yearly cost, including fees.
Tenure – The time you have to repay the loan.
Collateral – Security pledged for certain loans.
✅ Understanding key Loan Terminology helps you borrow smart and avoid surprises.