Banking terms beginning with F
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Alphabetical List
FREE CREDIT PERIOD
The free credit period is associated with credit. This period can be extended to 52 days. A person does not need to pay interest charges during this period, if he/she has made the full payment of his/her dues.
FIXED RATE
A fixed rate scheme means the interest rate has been specified for the full term of the loan. However, this scheme is not carried out in reality. The banks or lending institutions feature a clause that enables them to revise the interest rates after certain period of time. They can also modify rates, if the value of funds rises considerably.
FLOATING RATE
An interest rate that goes up and down periodically is referred to as the floating rate. Under the scheme of floating rate, the interest rate is influenced by the Floating Reference Rate (FRR) or Benchmark prime Lending Rate (BPLR) of the bank. It implies that interest rate of the loan can change following the variations in FRR and BPLR.
FINANCE CHARGES
Finance charges or overdue interest charges are related to credit cards. These charges are levied on an individual's account, if he/she has failed to clear the payment of last billing cycle. These charges vary between 35 and 42% on an annual basis. A person, who has to pay finance charges, has to miss out on free credit days. He/she has to pay interest on cash advances from the time the transaction was made until its final settlement.
FREE CREDIT PERIOD
The free credit period is associated with credit. This period can be extended to 52 days. A person does not need to pay interest charges during this period, if he/she has made the full payment of his/her dues.
A fixed rate scheme means the interest rate has been specified for the full term of the loan. However, this scheme is not carried out in reality. The banks or lending institutions feature a clause that enables them to revise the interest rates after certain period of time. They can also modify rates, if the value of funds rises considerably.
FLOATING RATE
An interest rate that goes up and down periodically is referred to as the floating rate. Under the scheme of floating rate, the interest rate is influenced by the Floating Reference Rate (FRR) or Benchmark prime Lending Rate (BPLR) of the bank. It implies that interest rate of the loan can change following the variations in FRR and BPLR.
FINANCE CHARGES
Finance charges or overdue interest charges are related to credit cards. These charges are levied on an individual's account, if he/she has failed to clear the payment of last billing cycle. These charges vary between 35 and 42% on an annual basis. A person, who has to pay finance charges, has to miss out on free credit days. He/she has to pay interest on cash advances from the time the transaction was made until its final settlement.
