Banking Glossary (I)

Installment Loan
	A loan that you promise to pay back by paying the same amount of money on a regular basis, usually monthly, for a specific period of time. (Eg : EMI loan).
Interest
	Interest is the periodic amount credited / debited to a deposit / loan account by a Bank based on accepted agreed terms and conditions by the depositor and the Bank / the loanee and the Bank. Interest is calculated at a specified percentage of the principal amount.
Interest and Principal Certificate
	A certificate issued for the loan confirming the details of the interest paid and principal repaid for a completed financial year.
Interest Category
	This refers to the interest category of the loan that was sanctioned by the Bank. The interest category is allocated by the Bank based on the customer's request.
	Variable (Floating)
	The interest rates of the loans sanctioned under variable interest rate category will be changed during the tenure of the loan at specified intervals (see floating rate).
	Semi Fixed
	The interest rates of the loans sanctioned under semi fixed interest rate category remains fixed for the period 'stipulated' by the Bank in the terms and conditions of the agreement and / or sanction letter. After the said period, the loan will be re-priced as agreed to specified.
	Fixed
	The interest rates of the loans sanctioned under fixed interest rate category remain fixed throughout the tenure of the loan.
Interest Rate
	The rate paid on an interest-bearing account, such as savings and term deposit, also the rate charged on a loan or line of credit. Different types of accounts and loans pay or charge different rates of interest. Interest rate is specified in percentage term alson with periodicity of calculation (say 8% per annum)
Internal Capital Adequacy Assessment Process (ICAAP)
	In terms of the guidelines on BASEL II, the banks are required to have a board-approved policy on internal capital adequacy assessment process (ICAAP) to assess the capital requirement as per ICAAP at the solo as well as consolidated level. The ICAAP is required to form an integral part of the management and decision-making culture of a bank. ICAAP document is required to clearly demarcate the quantifiable and qualitatively assessed risks. The ICAAP is also required to include stress tests and scenario analyses, to be conducted periodically, particularly in respect of the bank's material risk exposures, in order to evaluate the potential vulnerability of the bank to some unlikely but plausible events or movements in the market conditions that could have an adverse impact on the bank's capital.
Introductory Rate
	The Annual Percentage Rate (APR) applied for a specific introductory period. The intro rate is usually lower than the regular APR. After the introductory period is over the rate switches to the regular APR.
Inward Remittances
	Fund received through banking channels electronically or otherwise for credit to a designated identifiable account.