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Definition
1 Accrued Interest Interest that accumulates on the unpaid principal balance of a loan.
2 Acquirer Acquirers are banks and financial institutions that collaborate with businesses to accept credit/debit card payments.
3 Advance Booking Booking of a vehicle with the manufacturer through advance payment.
4 Agreement Stamping Charges Charges paid by the customer for stamping of the financing agreement.
5 Amortization Loan payments by equal periodic amounts calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.
6 Amortization Schedule Information on Equal Monthly Installments (EMI) with a breakup of principal and markup along with the loan outstanding.
7 Annual Fee / Renewal Fee An annual fee typically charged to customers with credit cards/revolving line facilities for maintenance of their facilities.
8 Applicable Rate Rate applied to the facility.
9 Application / Loan Application Form A form to be filled in and signed as per the Bank’s requirements to avail banking facilities. The required details vary for each facility. Applications may also require certain specified documents to be attached.
10 Appraisal Agency Agency used for assessing the market value of an asset.
11 ATM An Automated Teller Machine or any card-operated machine/device—whether belonging to the Bank or other participating banks, financial institutions, or Visa/Mastercard global ATM networks—that accepts the card.
12 Auto Loan The loan/financing facility used to purchase a vehicle for personal use.
13 Balance Transfer (BTF) Transfer of an existing finance facility of a borrower from other banks/DFIs.
14 Balance Transfer Account An account in the name of the customer opened for the purpose of the facility.
15 Balloon Payment An additional payment made by the customer in excess of the installment amount to reduce the principal outstanding.
16 Banker’s Lien Bank’s legal right to retain a customer’s assets until a debt is paid.
17 Base Rate Benchmark rate for determining the pricing of a loan.
18 Billing Cycle The recurring time period in which credit card statements are generated.
19 BOQ (Bill of Quantity) Breakdown of amounts in construction-related cases.
20 Business Person An individual managing or owning their own business.
21 Card The applicable Visa Card, MasterCard, or any other debit/credit card, including co-branded, e-cards, supplementary cards, and replacement cards issued by the Bank.
22 Card Account The Visa/MasterCard account or any related account opened by the Bank for entering debits/charges and credits related to the card member and supplementary card member.
23 Card Issuer A bank, financial institution, credit union, or agency that issues a card to the public or its members.
24 Card Member A person to whom the card is issued by the Bank. This includes all supplementary card members.
25 Card Replacement Fee Fees charged by the bank for replacement of a lost, stolen, or damaged card.
26 Card Transaction Any payment made or cash advance obtained, or any amount to be debited from the Card Account, or any amount charged by the Bank or any merchant for goods, services, and other benefits by or through the use of the Card.
27 Cash Advance Amount of money in any currency availed or lent to the Card Member by the Bank or any participating bank or ATM, whether in cash or in any other form of payment.
28 Chargeback A credit card transaction that is returned or not honored. Usually initiated by the cardholder due to faulty products, credit card fraud, disputes, or non-compliance with rules. A chargeback restores the funds to the cardholder’s account.
29 Chargeback Period The time period after a credit card transaction within which the cardholder must initiate a chargeback if the transaction is disputed.
30 Charges The amount payable by the customer to the Bank under the Terms and Conditions, including but not limited to any transactions, Annual Membership, Service Fees, late fees, and other applicable charges.
31 Clean Limit Credit limit granted by the Bank without any collateral, whether liquid or non-liquid.
32 Clear Title When a property is free from any disputes, legal issues, or encumbrances, it is said to have a clear title.
33 Closing Balance The amount payable (or available) as of the last working day of a given period/month.
34 Co-borrower A secondary person who applies for a loan with the primary applicant.
35 Collateral An asset pledged to a lender to guarantee repayment. This may include savings, bonds, insurance policies, jewelry, property, etc., used to secure the loan.
36 Collector A bank employee responsible for collection/recovery of outstanding amounts.
37 Co-signer A person who signs a loan or credit card agreement with the primary applicant and is equally responsible for repayment if the primary borrower defaults.
38 Credit History A financial profile that reflects how an individual repays bills, clears debt, and manages obligations with banks and other financial institutions.
39 Credit Limit The maximum borrowing amount that can be drawn on an account based on prior approval from the Bank. It depends on the customer’s credit history, repayment capacity, and relationship with the Bank.
40 Credit Rating / Score An evaluation of a person’s creditworthiness, predicting their ability to repay debts and the likelihood of default.
41 Cross Sell Selling of additional products or services to an existing customer.
42 Current A customer who is making all payments on time.
43 Current Balance / Outstanding Balance / Total Outstanding The total amount owed to the Bank at a particular point in time. This may include markup, late payment charges, annual/renewal fees, and other liabilities.
44 Customer An individual who avails any banking facility or product.
45 Dealership The vehicle is being provided through an authorized dealer.
46 Debt Ratio / Debt Burden A ratio comparing the amount of money owed by the customer to their total monthly income. It reflects the percentage of income used for debt repayments.
47 Default / Delinquency Occurs when a customer fails to make payments as per agreed terms and conditions. A loan becomes delinquent when installments are not paid on time.
48 Delivery Acceptance Form In the context of auto loans, this mandatory document is signed by the customer to acknowledge acceptance and possession of the vehicle from the dealer.
49 Desired Financing Amount The amount of financing requested by the customer.
50 Desired Financing Tenure The loan tenure or repayment duration preferred by the customer.
51 Direct Debit / Auto Debit Facility A facility offered by the Bank to the customer, through which either full or minimum monthly payment is debited automatically from the customer’s account on the due date.
52 Disbursement Loan payout in the name of the customer.
53 Discrepancy Incomplete or missing documents, or illegible/contradictory information in the customer’s loan application or other submitted documentation.
54 Dishonoured / Returned Cheque A cheque returned by the payer’s bank for reasons such as insufficient funds, amount mismatch, illegible signature, overwriting, or being post-dated/stale.
55 Disputed Transaction A transaction posted to the Card Account that the cardholder does not accept and requests clarification or reversal for.
56 DPD (Days Past Due) Number of days after the due date when the customer’s payment was expected as per the agreed-upon repayment schedule.
57 Due Date / Payment Due Date / Installment Due Date The specified date in the statement of account when the minimum payment, current balance, or installment must be paid to the Bank for the facility availed.
58 E-Alerts Electronic alerts sent to the customer via SMS or email.
59 Early Settlement Payment of the full loan amount before the agreed maturity date as per the repayment schedule.
60 E-Banking / Internet Banking Banking transactions conducted through the internet using the Bank’s secure application accessed via username and password.
61 e-CIB / Credit Bureau Electronic Credit Information Bureau, established by the State Bank of Pakistan (SBP). All banks and financial institutions are required to report loans and advances to this bureau.
62 EMI (Equal Monthly Installments) Fixed monthly payments that include a portion of the principal and markup, payable over the loan tenure.
63 Equity / Down Payment The customer’s financial contribution towards a purchase—often a portion of the vehicle value paid before financing begins.
64 Expiry Date The expiration date printed on the Card, after which the card is no longer valid.
65 External Agencies Third-party service providers enlisted by the Bank to offer services to customers (e.g., valuation, legal, income assessment).
66 Facility Rate / Pricing / Interest Rate / Interest The markup rate charged on the financed amount as agreed upon in the loan agreement.
67 FCY (Foreign Currency Account) A bank account maintained in a foreign currency, such as USD, EUR, etc.
68 FED (Federal Excise Duty) A tax levied by the Federal Government on certain financial transactions and products.
69 Financing Agreement The formal agreement between the customer and the Bank outlining the terms of the loan or finance facility.
70 Fixed Rate A markup rate defined at the time of loan disbursement, which remains unchanged throughout the tenure of the facility.
71 Fixed Term Applicable to products or services with a predefined lifetime. Customers may incur charges if early termination or alterations are requested.
72 Floating Rate A markup rate that is adjustable and linked to a benchmark (e.g., KIBOR) plus a fixed margin, subject to revision at regular intervals.
73 FX Conversion Charges Charges borne by the customer to convert foreign currency transactions into Pakistani Rupees.
74 GCAS (Global Customer Assistance Service) A global support service provided to cardholders, offering emergency card replacement, cash assistance, and other services.
75 Guarantee A promise by a third party (guarantor) to repay the borrower’s debt in case of default.
76 Hypothecation The process of placing a charge/lien on a vehicle financed by the Bank.
77 Income Estimation Agency An agency used for assessing a customer’s income.
78 Installment Loan A loan in which the amount and number of payments are predetermined.
79 Insurance Premium The amount payable to an insurance provider in exchange for coverage of an asset at a predetermined premium rate.
80 Insurance Products Products designed to cover the customer’s liabilities/assets against unforeseen future circumstances.
81 Interest-Free Period The interest-free period applies only to retail transactions. It begins at the start of the statement period and ends when the payment is made.
82 IVR (Interactive Voice Response) A technology that allows a computer to interact with humans through voice commands or DTMF tones via keypad input.
83 KIBOR Karachi Interbank Offered Rate, determined monthly by the State Bank of Pakistan (SBP).
84 Late Payment Charges Penalty levied on late installment or loan repayments.
85 Lawyer Appraisal Agency An agency used to verify and appraise property documents.
86 Lease Facility A contractual arrangement in which the lessee (user) pays the lessor (owner) for the use of an asset.
87 Lease Facility Pricing The markup rate charged on the amount under the lease facility.
88 Liabilities Any or all amounts payable by the card member to the Bank.
89 Linked Account / Repayment Account The account opened for making monthly installment payments.
90 Litigation Charges Charges incurred by the Bank at the time of filing a legal suit against a defaulting customer.
91 LOU (Letter of Understanding) An agreement between the Bank and the customer outlining some key terms and conditions of the loan.
92 LTV (Loan to Value) The ratio of the loan amount sanctioned against the value of the property.
93 Manufacturer The vehicle manufacturer.
94 Margin The Bank’s profit percentage on a loan or finance facility.
95 Maturity Completion of loan payments or the end of the loan tenure.
96 Merchant Any person or entity supplying goods/services who accepts the Card as a form of payment.
97 Minimum Payment Amount A specified percentage of the current outstanding balance that the customer must pay to avoid delinquency.
98 Month A standard calendar month.
99 Mortgages A legal transfer of interest in immovable property to secure the repayment of a loan or finance.
100 Multiple Limit The total credit limit approved for a cardholder across all Credit Cards held with the Bank.
101 NCCA / Non-Checking Account A type of account where a customer can only make deposits but cannot withdraw funds. No instruments (like debit card, cheque book, or internet banking) are issued.
102 NOC (No Objection Certificate) A certificate issued in favor of the customer after loan clearance.
103 Off Us ATM A transaction conducted on another bank’s ATM.
104 On Us ATM A transaction conducted on the issuer’s bank ATM.
105 Outstanding Loans Loans that are currently payable or unpaid.
106 Overdue Payments / Late Payments Loan or credit card payments that have not been made by the due date. Such accounts become overdue one business day after the due date and may incur late fees.
107 Partial Prepayment A deposit made by the customer (in addition to the regular installment) to reduce the loan liability or monthly installment.
108 Payment Facility A facility that allows the customer to pay any amount(s) to any person or party for purposes like bill settlements or other approved transactions.
109 Personal Loans Loans given to individuals for purchasing goods, services, or for general personal expenses, including running finance or revolving credit.
110 PIN / ATM PIN Personal Identification Number used by cardholders at ATMs to access cash advances or account services.
111 Prepayment / Early Settlement A one-time payment, along with FED charges, that may be required if the customer chooses to repay the loan before maturity.
112 Prepayment Charges Financial charges applied if the loan is paid before the agreed maturity period.
113 Principal The amount of debt, excluding interest, that remains to be paid on a loan.
114 Processing Fee A one-time fee charged on the approved loan amount for processing purposes.
115 Progressive Letter A written document provided by the cardholder during a dispute, containing transaction details and supporting evidence.
116 Purchase Order A document issued by the bank to the vehicle dealer confirming the purchase after loan approval.
117 Rate Revision Letter A letter issued to the customer when the applicable interest rate is revised annually.
118 Ready Delivery A vehicle that is available at the dealer and can be delivered immediately after payment.
119 Ready Delivery Used A used vehicle available at the dealer’s end for immediate delivery after payment.
120 Registration Charges The amount required to register the vehicle with the Excise and Taxation Office.
121 Repayment The process of paying back the borrowed loan amount. Based on the interest type (fixed or floating), the borrower pays EMIs as per the agreement.
122 Repayment Period The tenure for which the facility or loan is approved.
123 Repossession Duplicate of existing definition. It is recommended to retain only one definition to avoid redundancy.
124 Revolving Loan A loan with no set maturity date, allowing the borrower to draw funds up to an approved credit limit, with possible renewals at set intervals.
125 Reward Points Points earned by the customer when using a credit card for transactions. This feature may vary from bank to bank.
126 Right of Set-Off In the event of default or otherwise, the bank has the right of set-off — i.e., the bank, at its discretion and without notice, may recover outstanding amounts from any of the customer’s account(s) maintained with the bank.
127 Rupee / PKR Abbreviation for Pakistani Rupee, the official currency of Pakistan.
128 Salaried Individual A person employed on a monthly salary basis.
129 Sale Order A confirmation document sent to the customer prior to the delivery of a vehicle.
130 Schedule of Charges The document detailing service fees, charges, and other fees applicable to the card, balance transfer facility, or account, issued bi-annually by the bank.
131 Secured Limit A credit limit granted by the bank that is secured against collateral, liquid, or non-liquid securities. In case of default, the bank has the right to recover outstanding dues using the said security.
132 Security An asset pledged to the bank to secure repayment of a loan.
133 Self-Employed Professional An individual operating his/her own professional business, such as a doctor, architect, or lawyer.
134 Semi-Commercial Refers to vehicles that can be used for both personal and commercial purposes.
135 Service Establishment The merchant acquiring bank that authorizes its merchants to accept card transactions under agreement and respond to dispute queries.
136 Service Fee / Annualized Percentage Rate (APR) The fee determined by the bank, listed in the Schedule of Charges, payable by the customer on outstanding liabilities and other amounts.
137 SMS Fee Charges applied for receiving SMS alerts related to your banking transactions.
138 Standing Instructions / Auto Debit Specific written instructions provided by the customer to debit a specified amount from their account at a pre-defined frequency. Often used for loan repayment.
139 Statement of Account A monthly or periodic statement issued by the bank showing details of transactions, charges, and balances.
140 Suit Legal case filing by the bank, typically in response to default or dispute.
141 Supplementary Card An additional card issued with the consent of the primary cardholder, allowing use of the credit limit by an authorized person.
142 Supplementary Card Member The individual who is issued the supplementary card.
143 T-PIN Telephone Personal Identification Number, used to authenticate transactions via phone banking or IVR systems.
144 TAT – Turnaround Time The time taken to process a loan, card application, or any other banking request.
145 Temporary Credit A short-term credit entry posted by the bank to a cardholder’s account during the dispute resolution process.
146 Tenure The loan duration for which the credit facility has been approved. Typically expressed in months.
147 Term Loan A loan disbursed for a fixed time period. The principal is repaid through scheduled installments.
148 Time-Barred Transactions A transaction disputed after the allowable time period (e.g., 120 days or as per Visa/MasterCard rules).
149 Title of the Property Documents that legally identify the owner of the property.
150 Title of Vehicle Documents verifying the legal ownership of a vehicle, such as the excise file or registration book.
151 Top-Up A credit line replenishment or enhancement, allowing the customer to access additional funds on top of an existing loan or credit facility.
152 Total Cash Outlay (TCO) The total amount payable after auto loan approval, including down payment, insurance, processing fee, and other applicable charges.
153 Total Monthly Payment (TMP) The monthly payment amount which includes loan installment (principal + markup) and insurance premium.
154 Tranches Refers to loan disbursements made in installments/parts over a period of time.
155 Undertaking A written indemnity or assurance provided by the customer, often required to meet specific loan or compliance requirements.
156 Unsatisfactory Credit History When a customer fails to make payments on an availed cross-sell product or facility, the bank reserves the right to close the said product/facility either temporarily or permanently.
157 US Dollar The currency of the United States of America.
158 Validity Date The date printed on a card, indicating the period until which the card is valid and can be used.
159 Withdrawal Facility The ability to withdraw cash either via Automated Teller Machines (ATMs) or using a Debit Card issued by the bank.
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