Finance Glossary

Reference rates: July 03, 2026 · Verify with your bank before decisions.

Plain-English definitions of the finance terms behind every fin·calc tool — with a worked example for each.

A fixed monthly payment that repays a loan over its term, covering both interest and principal.

Investing a fixed amount at regular intervals (usually monthly) into mutual funds or an index.

A deposit locked with a bank for a fixed term at a guaranteed interest rate.

Interest earned on both your original principal and the interest already accumulated.

The process of paying off a loan through scheduled payments split between interest and principal.

The minimum amount of wealth a Muslim must hold before Zakat becomes due.

An annual 2.5% alms on qualifying wealth above the nisab — one of the Five Pillars of Islam.

The share of your income that goes to loan EMIs — used by banks to decide how much you can borrow.

The interest rate at which a central bank lends to commercial banks — the anchor for loan rates.

The benchmark Indian banks use to price floating-rate loans, linked to the RBI repo.

An Islamic lease-to-own financing structure with no interest (riba).

An Islamic cost-plus financing structure where the bank resells an asset to you at a transparent profit margin.

The loan amount as a percentage of the property or asset value.

The upfront portion of a purchase you pay yourself, with the rest financed by a loan.

A pause on loan repayments — common in education loans during study.

A pooled investment that holds a diversified portfolio of stocks, bonds, or other assets.