Financial Terms Starting With R

A scheduled date when a variable or hybrid loan's interest or profit rate is recalculated using the agreed benchmark and margin. The reset can change the instalment, tenor or allocation between principal and financing cost.

A payment authorised to repeat at agreed intervals, such as a subscription or membership charge. Cancelling the card may not by itself cancel the underlying service contract.

The amount payable when an eligible product or investment-linked policy is redeemed before or at a specified date, after applying the product's valuation rules and any applicable charges.

A method where interest or profit calculations are based on the outstanding balance rather than always on the original amount. CBUAE standards require APR and relevant credit-cost disclosures using the prescribed reducing-balance approach.

Replacing an existing loan or mortgage with new financing, usually to change rate, tenor, lender or other terms. A refinancing decision should account for settlement fees, new processing or valuation costs and total repayment.

Payment by an insurer to an insured for eligible expenses already paid by the insured, after required documents are submitted and the claim is approved under the policy.

Continuing a product or policy for another term after its current period ends. New pricing, benefits, exclusions or terms may apply at renewal and should be reviewed before acceptance.

The premium quoted or charged to continue an insurance policy for a new period. It can change based on claims experience, age, risk, market conditions, benefits and underwriting factors.

The length of time scheduled for repaying a loan or financing facility. Regulatory maximums apply to certain UAE retail products, while lenders can choose shorter periods based on affordability and policy.

A table or plan showing when repayments are due and how amounts are allocated across principal and interest or profit. It helps a customer understand the expected path to full repayment.

Recovery of a secured asset after serious default where the lender has enforceable rights to do so. The process must follow the finance documents and applicable UAE legal procedures.

A person's status as a UAE national, resident expatriate or non-resident for a product's eligibility and regulatory treatment. Requirements can differ materially across these groups.

A negotiated change to an existing credit facility because the original payment arrangement is no longer suitable or sustainable. Changes can include tenor, instalments, rate or settlement arrangements and may be reflected in credit records.

A payment instruction that is not completed and is returned, for example because of incorrect account information, insufficient funds or another processing reason. Fees or late-payment consequences can arise depending on the product.

Credit that can be borrowed, repaid and used again up to an approved limit rather than being disbursed once under a fixed repayment schedule. Credit cards are a common form of revolving credit.

The date or period after which unused rewards can no longer be redeemed. Expiry rules can depend on earning date, account status or the external loyalty programme.

Points earned from eligible card spending or promotional activity and redeemable under the issuer's rewards programme. Earn rates, values, transfer options and exclusions vary widely.

An additional benefit, condition or amendment attached to an insurance policy. A rider can expand, restrict or modify cover and may require an additional premium.

The possibility of an uncertain event producing a financial loss or adverse outcome. Insurers price and underwrite insured risks, while lenders assess credit and repayment risk before approving facilities.

A motor-policy or membership benefit providing services such as towing, battery support, tyre assistance or emergency help, subject to geographic, usage and provider limits.