Glossary
Loan terms, in plain language
The words you will meet when you borrow, and what each one means for you.
- Appraisal
- The lender's check of your application and documents, to see whether the loan can be approved and what you can comfortably repay. At Baardy, our credit team carries it out and a person reviews every application.
- Bridging finance
- Short-term borrowing that carries a business across a gap, for example between paying a supplier and being paid by a customer.
- Credit-only microfinance institution
- A lender licensed to make loans but not to take deposits. Baardy Micro Capital is licensed as a credit-only microfinance institution by the Reserve Bank of Zimbabwe.
- Disbursement
- The release of the loan money to the borrower once the loan has been approved.
- Early settlement
- Paying off a loan before the end of its agreed term. At Baardy there is no early-settlement penalty, and you pay less interest.
- Payslip
- The statement of pay an employer gives an employee. Lenders use the latest payslip to see a regular income.
- Principal
- The amount you borrow, before interest and fees are added.
- Repayment schedule
- The agreed plan for paying a loan back: how much, and on which dates. At Baardy it can be weekly, fortnightly or monthly, and you agree it before you accept the loan.
- Term
- The length of time you have to repay a loan.
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