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Glossary of all terms


APR
APR is a parameterfor comparingcredit offerswith identicalparameters.It representsthe total costof the loan to theconsumer, expressedas an annualpercentage of the amountof the loan granted.APR Includesall costsof the loan, including interestandthe lenders’ costs for granting the loan (examination of documents, management fee, etc.).

Date of repayment
The date on whichthe weeklyormonthly payment mustbe submitted to theofficeofTerraCreditwherethe loan was granted.

Debtor
A person whois required torepay hisgrantedloan, including interesttothe account ofthe creditor.

Personal loan
The agreed amount or property provided by thelender to the borrowerfor a certain period with a definite pricein the form ofinterest.

Solvency
A state depictingthe ability of thecustomerto repay theloan grantedunder the termsof thecontract.

Financial institution
An institution, which provides loans to customers using its own funds.It does not require a license, but only a notification to the Bulgarian National Bank for the scope of the transactions under the Law on Credit institutions to start the business of lending loans using its own funds.

Maturity
Date by which the debtor is obliged to pay the agreed amount to the creditor.

Repayment period
An agreedperiodwithin which thecredit has to be repaid.

Repayment schedule
A schedule for repayment or any other monetary obligation with a fixed amount and due date of each installment.

Installment
The amount that contains a part of the principal and the agreed interest rates and fees, with which the customer regularly repays his/her loan or any other financial obligations.

Early repayment
The right of the client to discharge his obligations to the creditor before the agreed deadline between the parties. The Law on Consumer credit regulates the rules on early repayment of personal loans.


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