Financial Terms Starting With P

An extra repayment that reduces part of an outstanding loan or financing balance before maturity without closing the facility completely. It may reduce future instalments, tenor or total financing cost depending on the lender's method and applicable fee.

The deadline for the required payment under a card statement, loan schedule or other financial obligation. Payment processing time matters, so customers should not assume a payment initiated on the due date will always be credited the same day.

Technology that securely passes transaction information between an online merchant, payment provider and financial institutions so a digital payment can be authorised and processed.

A record of whether financial obligations and bills were paid on time or missed. Etihad Credit Bureau's individual Credit Report includes payment history for the past 36 months.

An approved temporary pause or postponement of scheduled repayments. It is not normally free borrowing: interest or profit may continue to accrue and the tenor or later instalments can change.

A card, account-based instruction, digital wallet, cheque or other approved means used to initiate a payment or transfer of funds.

An instruction to a bank or payment provider to transfer funds to a specified beneficiary. Accuracy of account, IBAN and beneficiary information is important because payment recovery may be difficult after execution.

An authorised entity that provides payment services such as acquiring, processing, wallets, transfers or payment initiation, depending on its licence and permitted activities.

Also known as

PSP

Insurance that pays specified benefits for eligible accidental death, disability or injury, subject to the policy. It is not the same as comprehensive health or life insurance.

An individual borrowing facility repaid from salary, end-of-service indemnity or other verifiable regular income. Under current CBUAE rules, the personal-loan amount is capped at 20 times salary or total income and the standard maximum tenor is 48 months, subject to eligibility and affordability.

A fraud technique using fake emails, websites, messages or calls to trick people into revealing passwords, card details, OTPs or other sensitive information. Legitimate banks do not need a customer's OTP to send money to them.

A Personal Identification Number used to authenticate certain card, ATM or account transactions. It should be kept secret and never stored with the card in an easily accessible form.

The date from which an insurance policy's cover begins, subject to any specified start time, waiting period or condition. Events before the effective date are generally not covered unless the policy expressly says otherwise.

The portion of an eligible claim the policyholder or insured must bear. Different excesses can apply to different claim types, drivers, providers or optional covers.

The maximum amount or benefit payable under a policy, section or type of claim. Sub-limits can apply within the overall policy limit.

The person or entity that enters into the insurance contract with the insurer and holds the policy rights and obligations. The policyholder may or may not be the insured person or beneficiary.

The date a transaction is formally recorded to an account or card statement. It can be later than the transaction date and can affect which billing cycle includes the transaction.

An initial indication that a lender may be willing to offer financing based on information reviewed at that stage. It is conditional and does not replace final credit approval, valuation, documentation or compliance checks.

Advance approval required before certain healthcare treatments, hotel deposits, car-rental holds or other transactions. The meaning depends on context: in insurance it concerns treatment approval; in payments it can refer to reserving funds or credit.

A temporary reservation of part of an account balance or card limit before the final transaction amount is posted. Hotels, fuel stations and car-rental companies commonly use holds.

A medical condition, symptom or treatment that existed before insurance cover started, as defined by the policy. It may be covered, excluded, subject to a waiting period or priced differently depending on the plan and applicable rules.

The amount paid or payable for insurance coverage. Premium can be one-off, monthly, annual or another schedule depending on the policy; takaful uses the term Contribution.

The person or entity responsible for paying premiums under an insurance policy. The premium payer does not automatically become the insured or beneficiary.

The amount of borrowed or financed capital before interest, profit and other costs. As repayments are made, the outstanding principal normally reduces according to the facility's repayment method.

A fee charged for arranging, processing or setting up a financial product or transaction. It should be considered together with the rate and other costs when comparing offers.

The rate used to express the financier's return in a Shari'ah-compliant financing product. Depending on the structure it may be fixed, variable or benchmark-linked, and APR or equivalent disclosure can still be relevant for consumer comparison.

Documents used to verify income, such as salary certificates, payslips, bank statements, audited financials or other evidence accepted by the lender. Required documents depend on employment and income type.

An independent or lender-approved estimate of a property's market value used in mortgage assessment. The valuation can affect maximum financing and LTV even where the purchase price is higher.

Insurance covering specified risks to property, which can include the building, contents or both depending on the policy. Mortgage lenders commonly require adequate building cover for the financed property.

A benefit payable under a protection-oriented insurance product when a covered event occurs, such as death or disability, subject to the policy definitions, limits and exclusions.

A card-linked insurance or benefit that may cover eligible purchases against defined risks such as accidental damage or theft for a limited period after purchase. The exact items, limits and exclusions vary by card.