Borrowing Money

2. This is a mathematical model used to estimate the probability that a borrower will display a defined behaviour (e.g. loan default, bankruptcy, etc.).
4. This is the amount of money borrowed or invested excluding interest incurred or paid.
7. This is the legal term for any repayments that are currently overdue, having missed one or more scheduled repayment dates. If a payment goes into Arrears, borrowers are charged an overdue Fee.
9. Borrowers refers to everybody who has a loan, or is in the process of applying for a loan.
10. A secured loan is one that is obtained with the use of an asset as collateral for the loan.
11. Per annum, per year
12. This is a loan that is granted for personal use; usually unsecured and based on the borrower's integrity and ability to pay.
14. This is the rate at which interest is paid by the borrowers each year. Specifically, the interest rate is a percentage of the principal which the borrower will repay over and above the principal repayments each year. The interest rate is fixed for the term of a loan.

1. All approved borrowers who have accepted their loan terms and received their funds, can still change their mind and withdraw their loan application within 7 working days of the loan disbursal date, without penalty.
3. The Credit Contracts and Consumer Finance Act 2003, also known as CCCFA, is one of the 21 pieces legislation.
5. This is a one-off fee charged to borrowers when they take out a loan. This fee is added to the total amount of a loan.
6. The Financial Markets Authority (FMA) is the governing body that regulates financial services providers in New Zealand.
8. The amount of principal currently still outstanding on a loan. As borrowers pay off their loan, the principal outstanding reduces.
13. This is a fee charged to lenders for the processing and management of loan repayments. Amongst other costs it covers the cost of the Customer Service and Collections team as they work to ensure borrowers maintain regular scheduled repayments.