Charge - A charge imposed by the Islamic banking institution on
early payment of financing in full. The charge can either be a flat
rate or 'x' months of profit.
Early Settlement - Settle in full the balance due under the
hire purchase agreement earlier than the date originally agreed
Early Settlement Penalty - A fee charged by banking
institutions for early settlement of the loan in full. The fee
charged is usually based on a percentage of the loan amount or 'x'
number of months in interest.
Effects Not Cleared - Cheques and other items paid in by a
customer for the credit of his/her account, of which the cheque is
still pending clearance by the drawer's bank. Although these amounts
will be shown in the customer's balance, it is still not cleared in
the books of the bank. The bank is under no obligation to pay any
cheques drawn against items not yet cleared.
Emergency Fund - A sum of money set aside to meet
emergencies, unforeseen expenses or seasonal expenses (e.g. school
fees, insurance, etc). As a rule of thumb, the amount should be
equivalent to about three months salary and this should be placed in
low risk investments.
Equity Fund - An investment fund that invests primarily in