Information on the banking terms beginning with letter P

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A person needs to have pin number in order to gain an access to the ATM. This number is required, if the person is using credit card, ATM card or ATM-cum-debit card for the purpose of withdrawing money. Pin number is a set of digits that is sent by the bank to its customer separately after he/she receives the card. The pin number needs to be kept secret. According to the experts in banking sector, it is wise to change this number so that any other person apart from the card holder cannot get access to the holder's account. Some customer service counters of the institutions ask for pin number. In fact, some retailers also need this number to enable cash transactions.


PLR stands for Prime Lending Rate and BPLR for Benchmark Prime Lending Rate. PLR/BPLR is given to the main customers of the lending institution. Mostly, the rates of interest for all retail loans are connected with PLR/BPLR. However, in some cases, interest rates are dependent on the floating reference Rate (FRR).


A person has to bear pre-payment penalty if he/she decides to close the loan amount ahead of time of its specified expiry date. This penalty is levied on the principal that a person owes to a lending institution. This penalty saves the lending institution from facing a loss of income generated through interest rates. Previously, many lending institutions used to levy a pre-penalty, if the person closed his home loan before the loan tenure. Nowadays, in case of home loans, if a person has a proof that the money he is using for foreclosure belongs to his own resources, he can get rid of the pre-payment penalty. However, any other loan apart from home loan is subject to pre-payment penalty.


A lending institution levies this fee in order to process the loan application of a person. This fee can be waived off during festive offers, if the lending institution so decides.