Each instalment is split into a principal repayment and an interest payment. An immovable or movable property which can used as a security against which credit can be offered. Interest charged or paid on the principal and the accumulated interest, unlike Simple Interest which is paid only the principal. The decline in value of an asset over a period of time. The loan can be repaid by paying a fixed amount every month, known as Equated Monthly Instalment.
Insurance companies issue a note first, which confirms that the asset has been insured.
The policy normally takes few days as it has to be processed by the company. This note which is issued before the actual policy is made is called Insurance Cover Note. Contract by which the owner of an asset lets it out for use to another for a specified time on payment of a specified amount called rental. The interest charged by the financier on the amount financed. The time duration for which loan has been provided.