Financial Terms Starting With E

Repaying all or part of a loan or financing facility before the scheduled end of its tenor. Early settlement can reduce future financing cost but may involve a permissible settlement fee and product-specific conditions.

A charge that may apply when an eligible loan or financing facility is repaid before maturity. The applicable cap and method depend on the product and regulatory framework, so the current Key Facts Statement and fee schedule should be checked.

A credit-card feature that converts an eligible purchase or balance into scheduled instalments. The plan may have interest or profit, a processing fee, merchant restrictions or early-settlement conditions even when promoted as low-rate or 0%.

Also known as

EPP

A rate that reflects the economic cost of borrowing after considering how interest is calculated and, depending on methodology, certain fees or compounding effects. It should not be confused automatically with a simple flat-rate quotation.

Also known as

EIR

The Emirates Interbank Offered Rate, a UAE Dirham benchmark published for multiple tenors and used as a reference in financial transactions, including some variable-rate loans and mortgages. A variable mortgage may be priced as EIBOR plus a bank margin.

The minimum conditions a provider uses to determine whether an applicant can be considered for a product. Meeting the stated criteria allows an application to be assessed but does not guarantee approval.

Income that a lender accepts when assessing affordability and repayment capacity. Salary is common, while other regular income may be accepted if it is verifiable and meets the lender's policy and regulatory requirements.

A commonly used term for the regular monthly payment on a loan or financing arrangement. The payment may include principal plus interest or, for Islamic finance, the applicable financing components under the product structure.

Related terms

Principal

The UAE identity card issued by the Federal Authority for Identity, Citizenship, Customs and Port Security. Banks and other regulated entities commonly use it as part of identity verification and KYC processes.

Also known as

EID

A legal or financial claim, charge or restriction attached to an asset. A mortgage is a common example of an encumbrance over property until the secured financing obligations are settled and the charge is released.

A statutory employment benefit that may become payable to eligible employees when employment ends, based on the applicable UAE employment regime and employment terms. It is separate from salary and should not be treated as guaranteed borrowing capacity.

Also known as

EOSB

A formal change added to an insurance policy that amends coverage, details, limits, exclusions or other terms. The endorsement becomes part of the policy contract.

Additional customer checks applied when a relationship, transaction or risk profile requires closer review under AML/CFT and sanctions controls. It can involve more detailed information on ownership, source of funds, source of wealth or expected activity.

Also known as

EDD

The portion of an asset's value that is not financed by debt. For property, it is broadly the market value less outstanding secured borrowing; in a business, equity represents owners' residual interest after liabilities.

The amount the insured must pay toward an eligible claim before or alongside the insurer's contribution. The amount can be compulsory, voluntary or applied differently for specific types of claims.

A circumstance, event, condition or type of loss that an insurance policy does not cover. Exclusions should be read together with the policy's definitions, conditions and endorsements.

The date after which a card, policy or other financial instrument is no longer valid unless renewed or replaced. For insurance, cover generally ends at the policy expiry time unless renewed according to the policy terms.