Have you ever dreamt of owning a car? Does it seem exciting? You only need to know where you are heading with your decision. Some will have the cash or borrow some financing. Auto finance is one of the famous car buying options available. You only need to understand the technical terms to avoid confusion and making the wrong decisions. Also, looking confident while applying for a loan makes you a serious person. Below is a list of standard terms used while applying for a loan.
Lender
A lender is a body giving you the loan. It can either be a bank or any other financial institution. In some cases, dealers are also lenders.
Principal
This is the loan applied for.
Interest Rate
The percentage charged on the principal amount that the lender sets as profit from the loan. Some people charge it on an annual basis while others do it twice per year. Every loan will have this type of interest.
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