Car Loan Glossary

Advance EMI: 
Advance EMI is the certain number of monthly repayments that customer has to offer to the lender as post dated cheques. 

Basic Qualifier: 
Once customer or borrower fulfills the basic criteria set by the customer, he is referred to as basic qualifier. 

Down Payment: 
Down payment is made by the borrower. Finance companies normally give loans up to 80-85% of the value of the car. Down payment is the remaining part of the car price that will be paid by the buyer. 

Lender sets certain criteria to get only desired candidates and filter out the undesirable candidates. 

EMI is the Equal Monthly Installments that customer has to pay every month to amortize the loan. 

Flat rate of interest: 
Flat interest rate is settled on at the time of application for the entire term of the car loan. 

Floating rate of interest: 
Floating rate of interest is adjustable. Changes in floating rate may impact the borrowers too. If the floating rate reduces, the advantage is for customers like you. However, when the floating rate is more than what you had earlier agreed to, you are the loser. 

Refinance refers to the settling of the original loan through the proceeds received from a new loan. Through refinance, a customer gain by reduced rate, better credit score etc. 

Tenure is the term for which the loan has been taken.