Financial Terms Starting With L

A fee that may be charged when a required payment is not made by the due date, subject to the product terms and permissible fee framework. Late payment can also affect credit history and trigger collections activity.

A bank, finance company or other authorised entity that provides credit or financing. The lender sets product terms within applicable regulation and assesses each application under its credit policy.

A financial obligation owed by a person or business. Loans, credit-card balances, overdrafts and amounts payable to suppliers are common examples of liabilities.

A document from a lender confirming specified outstanding credit obligations or settlement information. It is commonly requested during loan buyouts, salary-transfer changes or other refinancing processes.

A financial institution licensed and supervised by the Central Bank of the UAE for activities within the CBUAE's mandate. CBUAE consumer-protection rules impose specific conduct and disclosure requirements on LFIs.

Also known as

LFI

A legal right or claim over an asset or funds that secures an obligation. A bank may, for example, place a lien over a fixed deposit used as security for a credit card or loan.

Insurance designed to pay specified benefits on death or other covered life events, depending on the product. Some policies provide pure protection while others can include savings or investment components.

A sum of money or financing provided under an agreement that requires repayment according to stated terms. Cost can include interest or profit, fees and insurance where applicable.

The contract setting out the amount, pricing, repayment schedule, fees, security, rights and obligations for a loan or financing facility. It should be read together with the KFS and any related security documents.

The amount still owed on a loan or financing facility at a particular time. A settlement amount can be different because it may include accrued interest or profit, permissible fees or adjustments.

A refinancing arrangement where a new lender pays off an eligible facility with another provider and replaces it with new borrowing. Customers should compare the new APR, tenor, fees and total repayment rather than focusing only on the monthly instalment.

Combining two or more eligible debts into a single new financing arrangement. Consolidation can simplify payments, but total cost can rise if the new tenor is significantly longer or fees are added.

The release of approved loan or financing funds after required conditions are met. Funds may be paid to the customer, a seller, another lender or another specified party depending on the facility.

Changing the repayment schedule of an existing facility, usually because of an agreed restructuring or customer circumstances. Rescheduling can alter instalments, tenor and total financing cost.

The agreed period over which a loan or financing facility is scheduled to be repaid. A longer tenor can reduce the monthly payment but can increase total interest or profit paid.

Additional borrowing added to or replacing an existing loan when the lender's eligibility and credit requirements are met. A top-up can increase the outstanding balance or extend repayment and should be assessed on total cost.

The percentage of a property's value financed by the mortgage. Current CBUAE rules set different maximum LTVs for first homes, subsequent or investment properties and off-plan purchases, with different first-home limits for UAE nationals and expatriates.

Also known as

LTV

Motor insurance protection for eligible loss or damage to the insured vehicle, subject to policy terms. It may be provided within comprehensive cover or another approved motor policy structure.

A credit-card travel benefit providing eligible airport-lounge visits through the issuer or a partner programme. Visit limits, guest rules, qualifying spend and participating lounges vary by card.