Adjutor
Lendsqr's API platform for connecting identity checks, credit data, and lending services to other applications.
Lendsqr Glossary
Plain English definitions of the terms that come up when you borrow, lend, or manage a loan business.
26 terms · A–E
A
Amortization
Paying off a loan gradually through scheduled payments that cover principal and interest.
Annual Percentage Rate (APR)
The yearly cost of borrowing, including interest and applicable fees, expressed as a percentage.
Annuity
A series of payments made at regular intervals, such as monthly payments over an agreed period.
Approval Workflow
The steps and team approvals an application must pass through before a lending decision is finalized.
Arrears
Money that should already have been paid but is still outstanding.
Asset
Something of value owned by a person or business, such as cash, equipment, or property.
B
Balloon Payment
A large final payment due after a series of smaller loan repayments.
Bank Verification Number (BVN)
An identification number used to verify a bank customer's identity across participating banks in Nigeria.
Basis Point
One hundredth of a percentage point. A change of 100 basis points equals one percentage point.
Borrower
A person or business that receives money with an agreement to repay it.
C
Cash Flow
The money coming into and going out of a person or business over a period of time.
Collateral
An asset offered as security for a loan, which may be recovered by the lender if the borrower fails to repay.
Compound Interest
Interest calculated on both the original amount and interest already added to it.
Credit Bureau
An organization that collects credit information used to understand borrowing and repayment history.
Credit Score
A number that summarizes creditworthiness using information such as borrowing and repayment history.
D
Debt-to-Income Ratio (DTI)
The share of a borrower's income used to make debt payments, usually measured monthly.
Default
Failing to meet the repayment obligations set out in a loan agreement.
Delinquency
The state of being late with a scheduled loan payment.
Direct Debit
An authorized instruction allowing payments to be collected from a bank account.
Disbursement
The release of approved loan funds to a borrower.
E
Electronic Know Your Customer (e-KYC)
Verifying a customer's identity digitally using documents, data, or other electronic checks.
Equated Monthly Installment (EMI)
A fixed monthly loan payment that includes principal and interest.
Equity
The value of an asset or business after subtracting what is owed against it.
Escrow
An arrangement in which a third party holds money or assets until agreed conditions are met.
Exposure
The amount a lender has at risk if a borrower does not repay.
