Financial Glossary



Daily Rest Interest - Interest on housing loan calculated on a daily basis based on current outstanding balance.

Deadlock Letter - A letter from the banking institution explaining the decision of the banking institution and reasons why your complaint could not be resolved.

Default - i. Failure to make installment payment as stated in the loan or financing agreement. ii. Failure to pay the monthly installment to Islamic banking institutions when due.

Deposit - Initial cash payment required to be paid before entering into the hire purchase agreement.

Disbursement Fee - Various types of fees such as registration of charge fee, land search fee, bankruptcy search fee incurred by banking institutions and solicitors attending to the loan documentation, in relation to the loan, which are payable by borrowers.

Discount Privileges - Discounts enjoyed by cardholders at selected merchants for purchases made and charged to credit cards.

Dishonor - The act of refusing to pay a cheque when presented.

Documentation - A set of agreements, forms, and other documents to be signed in connection with a loan. The documentation will form a full set of records for the loan.

Dormant Account - An account that has no transaction for a specific period, e.g., 6 months or 12 months.

Down payment - i. An initial payment made by the buyer to the seller of the house. ii. An initial payment made by the buyer to the developer or seller of the property.

Drawee Bank - A bank that is instructed by the drawer to pay the amount of a cheque drawn on it.

Drawer - Accountholder who directs a bank to pay a sum of money stated on a cheque drawn on it.



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