Financial Terms Starting With V

An estimate of an asset's value prepared for a specific purpose such as mortgage lending, insurance or sale. The relevant value can differ from the price originally paid.

An interest or profit rate that can change during the product term, usually using a stated benchmark plus or minus a margin. Customers should understand the reset frequency and how rate changes affect instalments or tenor.

The UAE VAT treatment of financial services depends on the nature of the service. Certain explicit fees and insurance premiums can be subject to VAT while some margin-based financial services can be exempt, so the provider's tax treatment and invoice should be checked rather than applying one rule to every product.

Finance used to purchase an eligible vehicle. For regulated individual car loans, current CBUAE rules generally set an 80% maximum of vehicle value and a maximum repayment period of 60 months, subject to lender assessment.

Income that a lender can confirm using acceptable documents or reliable data sources. Verification can include salary credits, salary certificates, bank statements, business financials or other evidence.

A card credential issued digitally rather than, or in addition to, a physical card. It can be used for eligible online, wallet or recurring payments and may have separate limits or card details.

An insurance policy treated as having no effect under specified legal or contractual circumstances. Voidance can have serious consequences and should be distinguished from ordinary cancellation or expiry.