Open-end Credit

Closed end credit

A loan or extension of credit in which the proceeds are dispersed in full when the loan closes and must be repaid, including any interest and finance charges, by a specified date.

Open end credit

A pre-approved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due. The pre-approved amount will be set out in the agreement between the lender and the borrower.

Finance company

Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hd a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction.

Usury laws

Regulations governing the amount of interest that can be charged on a loan. Usury laws specifically target the practice of charging excessively high rates on loans by setting caps on the maximum amount of interest that can be levied.

Loan shark

a moneylender who charges extremely high rates of interest, typically under illegal conditions.

Pawnbroker

a person who lends money at interest on the security of an article pawned.

Annual percentage rate

is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Service credit

service credits are financial transactions credited or paid directly to the customer in the event of an unexcused failure by the service provider to achieve a key performance indicator or service level agreement.

Grace period

simple elegance or refinement of movement.