Financial Glossary



Acceptance Letter - A letter from the applicant indicating his willingness to accept the loan after the loan is approved by the banking institution.

Administrative Charges on Overseas Transactions - Charges imposed on overseas transaction by the card issuer.

Administrative Fees - Various types of fees imposed by the banking institution in relation to the loan, which are payable by the borrower.

Amount Financed - Total facility granted to hirer calculated as follows: Cash Price - Deposit + Freight (if any) + Vehicle registration fee (if any) + Insurance premium (for 1 year).

Annual Fee - A flat fee payable annually once the credit card is accepted. The fee is payable even though the card is not used. Fees are imposed on principal and supplementary cardholders, unless waived.

Annual Percentage Rate - The annual percentage rate is calculated in accordance with the following formula:

2NF (300C + NF)
2N2F + 300C (N + 1)


N is the total number of installments.

C is the number of installments that, under the contract, will be paid in one year or, where the contract is to be completed in less than one year, the number of installments that would be paid in one year if installments continued to be paid at the same intervals.

F is the amount determined in accordance with the formula

100C x T
N x A

C is the same number as the first-mentioned formula.
T is the total amount of the pre-determined terms charges.
N is the total number of installments.
A is the amount financed.

Application Form - A form to be completed when applying for loans, financing, or other banking products or services
from banking institutions.

Appraisal/Valuation Report - A written analysis of the estimated value of real estate prepared by a licensed Valuer/Appraiser.

Asset - Any item of economic value owned by an individual or a corporation. Examples are cash, securities, accounts receivables, stocks, office equipment, houses, cars, and other properties.

Authority Card - An identification card to be shown to the hirer by the repossessor before repossession. The card has the following details:

The name and address of the repossessor and banking institution.

Nature of appointment of the repossessor. The signature of an authorized representative of the banking institution.






Reasonable efforts are made to maintain accuracy of information published. However, information could contain errors or inaccuracies and is presented without warranty and statutory means. No liability is assumed for errors or omissions. Viewers are advised to consult their banker or financial consultant for complete information and their professional advise.

© 2009-2014  BLR.MY ® All Rights Reserved