Study Guide · Chapter 3
Loans, Credit & Recovery
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17 key terms | One-line exam reference
| Abbreviation | One-line meaning |
|---|---|
| APR | Annual Percentage Rate — annualized cost of borrowing including specified charges. |
| ARC | Asset Reconstruction Company — company that acquires and resolves stressed assets. |
| CIBIL | Credit Information Bureau (India) Limited — credit information company maintaining credit records. |
| DPI | Days Past Due — number of days a repayment remains overdue. |
| DSCR | Debt Service Coverage Ratio — cash available relative to debt obligations. |
| EBLR | External Benchmark Lending Rate — loan rate linked to an external benchmark. |
| EMI | Equated Monthly Instalment — fixed periodic payment toward loan principal and interest. |
| GNPA | Gross Non-Performing Assets — total NPAs before provisions are deducted. |
| LTV | Loan-to-Value ratio — loan amount expressed as a percentage of asset value. |
| MCLR | Marginal Cost of Funds based Lending Rate — internal benchmark lending rate. |
| NNPA | Net Non-Performing Assets — NPAs after provisions and eligible adjustments. |
| NPA | Non-Performing Asset — loan that stops generating income for the bank. |
| OTS | One-Time Settlement — negotiated settlement of a borrower’s outstanding dues. |
| PCR | Provision Coverage Ratio — provisions held as a proportion of bad loans. |
| ROI | Rate of Interest — percentage charged on a loan or paid on a deposit. |
| SARFAESI | Act dealing with securitisation and enforcement of security interests. |
| SMA | Special Mention Account — early-warning classification for a stressed loan account. |
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