Financial Terms Starting With M

The main insurance contract issued to a policyholder for a group or scheme, under which eligible members may receive certificates or benefits. Individual member cover remains subject to the master policy terms.

A false, incomplete or misleading statement about information that is important to an insurer's or lender's decision. Material misrepresentation can affect underwriting, claims, pricing or the validity of a contract, depending on the facts and applicable law.

The date on which a fixed-term deposit, financing arrangement, bond-like instrument or certain insurance product reaches the end of its stated term. Amounts payable at maturity depend on the product terms.

The portion of an eligible healthcare cost that the insured must pay under a medical insurance plan. It can be a fixed amount or percentage and can vary by treatment, provider or network.

The healthcare providers contracted for a particular medical insurance plan. Network tier, direct billing and reimbursement rules can materially affect where and how a member receives covered treatment.

A business or service provider that accepts payment from customers. For card payments, the merchant typically receives funds through an acquiring bank or payment service provider.

A financial institution or authorised provider that enables a merchant to accept card payments and routes transactions into the payment network for processing and settlement.

A four-digit code used by card networks to classify a merchant's main business activity. Reward, cashback or exclusion rules can depend on the MCC assigned to a transaction rather than the merchant's brand name.

Also known as

MCC

A type of card reward that can be earned from eligible spending and transferred, redeemed or used through an airline or travel programme. Earn rates, transfer ratios, expiry and availability depend on the card and partner programme.

The minimum account balance a bank requires to avoid a specified fee or maintain certain account benefits. The calculation may use a daily, monthly average or other method stated by the bank.

Also known as

MAB

The smallest amount a cardholder must pay by the due date to keep the account from being treated as unpaid under the card terms. Paying only the minimum leaves a larger revolving balance and can substantially increase finance charges and repayment time.

Also known as

MAD

Related terms

Payment Due Date

The minimum monthly or annual salary stated by a provider for considering an applicant for a product. A bank's product-specific threshold can be higher than a regulatory minimum and does not guarantee approval.

A required amount of eligible card spending during a stated period to unlock a benefit such as a welcome bonus, annual-fee waiver or lounge access. Excluded transaction types normally do not count.

A required payment that was not made by its due date. Missed payments can lead to fees, collections, loss of promotional benefits and negative credit-history effects depending on the product and reporting.

A digital service that stores payment credentials or value and allows eligible transactions through a phone or other device. Wallet availability depends on the bank, card, device and payment-network support.

The regular amount scheduled to be paid each month on a loan or financing plan. It may consist of principal plus interest or profit and can change for variable-rate products.

Also known as

EMI

Finance secured against real property. Current UAE mortgage rules regulate key ratios including DBR, LTV, maximum tenor and financing amount, while lenders apply additional credit, valuation and property criteria.

The process of recording a lender's mortgage or security interest against a property with the relevant land authority. Registration fees, documentation and procedures differ by emirate and property type.

The process of removing a registered mortgage or charge after the secured obligations are settled and the lender's release requirements are completed.

An assessment of a property's value by a lender-approved or qualified valuer for mortgage purposes. The lender may calculate LTV using the valuation and can lend on a lower figure than the purchase price where applicable.

Insurance for vehicles and related legal liabilities. UAE motor policies can include mandatory third-party liability and, where selected, broader cover for loss or damage to the insured vehicle and additional benefits.

A Shari'ah-compliant arrangement where one party provides capital and another manages the activity, with profit shared according to an agreed ratio and loss generally borne according to the applicable Shari'ah structure unless caused by misconduct or negligence.

A Shari'ah-compliant sale structure in which the financier acquires an asset and sells it to the customer at an agreed cost plus profit, usually with deferred payment. The product documents set the sale price and repayment terms.