Money terms, in plain words.

The company that runs mutual fund schemes and manages investors’ money. It is regulated by SEBI.

Laws and checks that financial companies use to stop illegal money from being moved through the financial system.

The gradual repayment of a loan through regular instalments, each covering interest first and then some principal. An amortisation schedule shows the split for every payment.

A way for two software systems to exchange data automatically and securely, such as an HRMS sending employee and attendance data to Ekam.

A set sequence of review steps a request goes through before it is approved, for example HR verification and then finance review.

The yearly cost of a loan including the interest rate and most fees, so loans can be compared like for like. It is usually higher than the headline interest rate.

How you divide your money between asset types such as equity, debt and gold, based on your goals and how much risk you can take.

A time-stamped record of who did what on the platform, kept so actions can be reviewed later.

Moving an existing loan to a new lender, typically to get a lower rate or better terms. Processing and foreclosure fees may apply.

A national platform, run by NPCI, that lets you pay many kinds of bills, such as electricity, water, gas and mobile, in one standard way with instant confirmation.

Paying a recurring bill, such as electricity, mobile or broadband, through an app or portal, with a receipt kept for your records.

The company or utility that raises a bill, for example an electricity board or a telecom provider.

A fee charged when an EMI or auto-debit fails because the account does not have enough money.

A loan taken by a business or its owner for working capital, equipment or expansion. Lenders usually look at turnover, cash flow and the credit history of the business and promoters.

The steady yearly rate at which an investment would have grown between two dates. It smooths out ups and downs so you can compare investments.

Example ₹1,00,000 growing to ₹1,33,100 in 3 years is a CAGR of 10%.

A health insurance claim where the insurer pays the hospital directly, so you do not pay the covered amount upfront.

A central registry that stores your KYC details once so that other financial institutions can reuse them.

A formal request to the insurer to pay for a loss or expense covered by your policy.

The percentage of claims an insurer settled out of the claims it received in a year. It is one signal of how reliably an insurer pays.

A second person who applies with you and shares responsibility for repayment. Their income and credit history can help a lender assess the loan.

An arrangement in which two lenders, for example a bank and an NBFC, jointly fund a loan and share the risk and returns.

A fixed share of every claim that you pay, with the insurer paying the rest.

Example With a 20% co-payment on a ₹1,00,000 claim, you pay ₹20,000.

An asset you pledge to a lender to secure a loan, for example property or gold.

Earning returns on your earlier returns as well as on the amount you invested. Over long periods it can make a large difference.

Your clear permission for a company to use your data or take an action on your behalf. You can give it only for stated purposes and generally can withdraw it.

A small charge some platforms or billers add for processing a payment. It is shown before you confirm.

A company that collects credit data from lenders and produces credit reports and scores. In India the licensed bureaus include CIBIL, Experian, Equifax and CRIF High Mark.

An independent agency’s opinion on how likely a company is to repay its debts. It helps lenders and investors judge financial strength.

A statement from a credit bureau listing your loans and cards, repayment history and enquiries. Lenders read it before approving credit.

A three-digit number, commonly between 300 and 900 in India, that summarises how reliably you have repaid credit in the past. Higher is better.

The share of your available credit limit that you are using. A lower share is generally better for your credit score.

Example Using ₹30,000 of a ₹1,00,000 card limit is a utilisation of 30%.

The total yearly amount a company spends on an employee, including benefits and contributions. It is higher than the money that reaches your bank account.

Keeping your personal and financial information safe and using it only for the purposes you agreed to.

A mutual fund that mainly invests in bonds and other fixed-income instruments. Its returns are usually steadier than equity, but not guaranteed.

The amount you pay yourself on a claim before the insurer starts paying.

Example With a ₹10,000 deductible and a ₹60,000 claim, the insurer pays ₹50,000.

The date on which the amount accessed early is recovered, usually from the salary being processed on payday.

The face value of a gift card, for example ₹500 or ₹1,000.

A way to buy and hold gold in small amounts online without storing physical gold. Prices move with the market, and you can usually sell back at the prevailing rate.

Example ₹2,500 buys a small fraction of a gram, worth whatever the gold rate is that day.

Lending that happens through apps and online platforms. RBI’s rules require clear disclosure of terms, direct flow of money between borrower and lender, and protection of borrower data.

A version of a mutual fund scheme bought without a distributor, with a lower expense ratio than the regular plan.

The release of the sanctioned loan amount to your account after documentation and conditions are completed.

Spreading money across different kinds of investments so that one poor performer matters less.

The number of days a payment has been overdue. Lenders report it to credit bureaus, and a high DPD hurts your credit score.

India’s data-protection law. It sets how organisations must collect and use your personal data, and gives you rights over it, including consent and correction.

Direct-to-Home television, a satellite TV service that you recharge with a plan, often paid through the same channels as other bills.

The part of your monthly pay you have already worked for, based on days worked so far in the salary cycle, before it is paid out on payday.

A way for employees to draw a portion of the salary they have already earned before payday, through an employer programme. Limits, charges and repayment terms are shown before you confirm.

Example After 15 working days on a ₹30,000 monthly salary, about ₹15,000 is earned. If the employer allows access to 50% of it, you could access up to ₹7,500.

Completing KYC digitally, for example by verifying with Aadhaar and an OTP, instead of submitting paper documents.

The rules deciding who can use a service, such as employment status, tenure or the lender’s own criteria. Being eligible does not guarantee approval.

A mutual fund that invests mainly in shares and has a three-year lock-in. Investments may qualify for a tax deduction under Section 80C in the old tax regime.

The fixed amount you pay every month to repay a loan. Each EMI covers part of the principal and part of the interest.

Example A ₹5,00,000 loan at 12% a year for 3 years has an EMI of about ₹16,607.

The core list of employees and their details, such as name, ID, joining date and salary, that the platform relies on for eligibility and limits.

Bringing employees onto the platform, usually by loading their data and inviting them to log in and verify themselves.

Formally appreciating employees for their work, for example through points, gift cards or awards.

The settings that let an employer decide which services are live for its people, who is eligible, how approvals work and how salary-linked rules apply.

A mutual fund that mainly invests in company shares. It can grow more over long periods but its value can fall sharply in the short term.

Something the policy does not cover, listed in the policy document. Read the exclusions before you buy.

A charge some mutual funds deduct if you redeem units within a set period after buying them.

Example With a 1% exit load, redeeming ₹50,000 within the period costs ₹500.

The yearly fee a mutual fund charges to run the scheme, shown as a percentage of the money invested. It is built into the NAV.

Example At 1%, a ₹1,00,000 investment costs about ₹1,000 a year in fees.

Guidelines set by the RBI on how lenders should treat borrowers, including clear disclosure of terms, fees and recovery practices.

A simple way to share data with the platform by sending a file, such as a spreadsheet or CSV, instead of building an API. SFTP is the secure version of file transfer.

A way of quoting interest on the original loan amount for the whole tenure, even as you repay. The effective cost is higher than the same number on a reducing balance.

Example A ₹1,00,000 loan for 1 year at a 10% flat rate costs ₹10,000 in interest, which works out to roughly 18% a year on a reducing balance.

The share of your monthly income that already goes to fixed obligations such as EMIs. Lenders use it to judge how much more you can comfortably repay.

Example If you earn ₹60,000 and pay ₹18,000 in EMIs, your FOIR is 30%.

Your account number with a mutual fund house. All your units in that fund house’s schemes are tracked against it.

Paying off the entire outstanding loan before the tenure ends. Any foreclosure charges are set out in your loan agreement.

A short window, usually around 15 days from receiving a policy, during which you can cancel it and get a refund of the premium, less certain charges.

A prepaid voucher from a brand, in a fixed value such as ₹500 or ₹1,000, that can be redeemed for goods or services at that brand.

A secured loan where you pledge gold jewellery with a lender and get money against its value. The gold is returned when the loan is repaid.

How pure gold is, measured in carats. 24K gold is about 99.9% pure and is the standard for digital gold.

The price of gold per gram at a point in time. It changes through the day, and buy and sell rates differ slightly.

The extra days after the premium due date during which you can still pay without the policy lapsing.

A lump sum an employer pays on leaving after a minimum period of service, as a thank-you for long service.

The process through which you can raise a complaint with a financial company and have it reviewed and resolved.

Your salary before deductions such as tax and provident fund.

A single policy that covers many people, such as the employees of a company, usually at a lower cost per person than buying individually.

A check on your credit report that a lender makes when you apply for credit. Several in a short period can lower your score slightly. A soft enquiry, such as checking your own score, does not.

A policy that pays for medical costs such as hospital stays and treatment, up to the sum insured.

A long-tenure loan to buy, build or renovate a home. The property is usually the security for the loan.

The software an organisation uses to manage employee records, attendance and payroll. Integrating it lets data flow automatically instead of by hand.

A mutual fund that mixes equity and debt in one scheme to balance growth and stability.

An 11-character code that identifies a bank branch. You need it, with the account number, to send money by bank transfer.

A mutual fund that simply copies a market index, such as the Nifty 50, rather than trying to beat it. Costs are usually lower.

The general rise in prices over time, which reduces what each rupee can buy. Investments need to grow faster than inflation to increase your real wealth.

Example If prices rise 6% a year, something that costs ₹100 today costs about ₹106 next year.

The company that issues an insurance policy and pays valid claims. Insurers in India are regulated by IRDAI.

The price of borrowing, shown as a percentage of the outstanding amount per year. It can be fixed for the whole loan or floating, which means it moves with a benchmark.

The regulator of insurance companies and intermediaries in India.

The checking of gold jewellery by the lender, for weight and purity, to decide how much can be lent against it. Stones and making charges are usually not counted.

A one-time payment an employer makes when you join. It is taxable and is often repayable if you leave within a stated period.

A bank account held by two or more people, who can usually all operate it. Check which holder’s name and account a payment or salary is tied to.

A second or third person named with the first holder on an investment folio or account. Rules on who can transact are set when the folio is opened.

A life insurance policy covering two people, such as spouses, that pays out on the first death, or the second, depending on the plan.

A standard one-page summary of a loan’s key terms, including the amount, APR, fees, tenure and repayment schedule, which lenders must give you before the loan is final.

A policy a business takes on a key person, such as a founder, so that it is compensated if that person dies or becomes unable to work.

A measurable target used to judge performance. Employers often link rewards or recognition points to KPIs.

The checks a financial company makes on an organisation, such as its registration, owners and directors, before serving it. It is the business counterpart of KYC.

The identity and address verification a financial company must complete before serving you.

Levels in an approval chain. L1 is the first reviewer, L2 the second and L3 the third, each with their own role.

A bank, NBFC or other regulated lender that offers loans through a platform. Approval, rate and tenure depend on the lender partner’s own criteria.

A secured loan where you pledge a property you own, such as a house or shop, to borrow a larger amount at a lower rate than most unsecured loans.

A platform that shows loan options from several lenders in one place, so you can explore and compare before applying. The lender partner, not the platform, decides on approval and sets the terms.

The loan amount as a percentage of the value of the asset it is secured against. A lower LTV means you are putting in more of your own money.

Example On a gold worth ₹1,00,000 with an LTV of 75%, the loan can be up to ₹75,000.

A period during which you cannot sell or withdraw an investment.

Investing a larger amount in one go, as opposed to a SIP that spreads it over time.

A control where one person prepares or requests a change and a different person reviews and approves it, so no one acts alone.

The end date of a policy, deposit or bond, when the final benefit or the invested amount is paid out.

A management report that summarises usage, transactions and approvals so employers can track how a programme is doing.

Adding balance or a plan to a prepaid mobile number. It is a common everyday payment.

A period during which a borrower is allowed to pause repayments, with interest usually still building up. Terms are set by the lender.

A pooled investment where many investors’ money is managed by a professional fund manager and invested in shares, bonds or other assets.

An instruction you give your bank to let a lender or biller collect payments from your account automatically, such as an EMI on its due date.

The per-unit price of a mutual fund, calculated from the value of its holdings after expenses.

A company that provides loans and other financial services but does not hold a banking licence. NBFCs are regulated by the Reserve Bank of India.

A hospital that has an arrangement with your insurer to provide cashless treatment.

The person you name to receive the benefit from a life insurance policy if something happens to you.

A loan that has stayed unpaid for 90 days or more and is classed as stressed by the lender under RBI norms.

The organisation that runs India’s retail payment systems such as UPI and BBPS.

The document an employer gives you with the terms of a job, including pay, CTC and joining date.

A mutual fund that you can buy into or sell out of on any business day, at that day’s NAV.

A short code, valid for a few minutes, sent to your phone or email to confirm that it is really you. Never share it with anyone.

The part of a loan or credit-card bill that is still unpaid at a given date, including any interest and charges due.

A facility that lets you withdraw more than the money in your bank account, up to a set limit, with interest charged on the amount used.

A ten-character identifier issued by the Income Tax Department, needed for most financial products and transactions.

The date your employer credits your salary. Earned Wage Access is designed for the gap between needing money and payday.

The process of calculating and paying employees’ salaries, including deductions such as tax and provident fund.

Support that helps an employer pay salaries on time when cash inflows lag behind payroll dates. It is arranged at the organisation level, not by individual employees.

The monthly statement from your employer showing your earnings, deductions and net pay.

Extra charges a lender may levy when a payment is missed or late, as set out in the loan agreement.

Insurance that pays a lump sum or benefit if you are injured or die in an accident, or become disabled because of one.

An unsecured loan for personal needs such as a medical bill, travel or a wedding. It is repaid in EMIs over a fixed tenure.

The period for which an insurance policy gives cover, such as 1 year for most health policies or 30 years for a term plan.

A loan offer a lender extends in advance based on data it already holds. It still needs your consent, verification and final approval.

A health condition you already had before taking the policy. It is usually covered only after the waiting period and must be disclosed honestly.

The amount you pay, monthly or yearly, to keep an insurance policy active.

Paying back part of a loan early, on top of the regular EMI. It can cut the interest you pay or shorten the tenure. Some lenders charge a fee, so check the terms.

The original amount you borrow, before any interest or charges are added.

A one-time charge a lender takes to assess and set up a loan. It is usually a percentage of the loan amount, and GST applies on it.

Switching a particular product, such as Digital Gold or Insurance, on or off for an organisation so employees only see what the employer has chosen.

A retirement savings scheme to which both employee and employer contribute a share of the basic salary each month.

A comparison of a figure with the one from the previous three-month period, used to read trends in company results.

A square barcode you scan with your phone to pay or to open a payment page. UPI payments commonly use it.

Paying an insurance premium every three months instead of once a year. The total over a year may be a little higher than paying yearly.

A measure of whether a business can meet its short-term bills from its most liquid assets, without selling stock. Higher generally means a stronger position.

An estimate of the premium for a given cover, based on details you share. The final premium can change after underwriting.

India’s central bank and the regulator of banks and NBFCs.

Matching two sets of records, such as platform transactions and salary deductions, to make sure every amount agrees.

Selling your mutual fund units back to the fund house and receiving the money.

A way of charging interest only on the amount still owed. As you repay principal, the interest part of each EMI falls.

Money an employer pays back to you for approved work expenses, such as travel or phone bills.

A health insurance claim where you pay the hospital first and the insurer repays you after you submit bills and documents.

Extending an insurance policy for another term by paying the premium before the policy ends.

Points earned for actions such as purchases or achievements, which can later be redeemed for gift cards or other benefits.

Exchanging reward points or a voucher for the benefit it carries, such as a gift card from a brand.

A scheme, often set by an employer, that recognises and engages people by giving them points or benefits for defined actions.

An optional add-on to a main insurance policy, for an extra premium, such as critical illness or accidental death cover.

The idea that higher potential returns come with higher risk of loss. No investment return is guaranteed, and past performance does not predict the future.

A SEBI-mandated meter that shows how risky a mutual fund scheme is, from low to very high.

Giving each administrator access only to what their role needs, for example HR sees employee data while finance sees funding reports.

The effect of a SIP: you buy more units when prices are low and fewer when prices are high, which smooths your average purchase cost over time.

Money an employer gives against future salary, usually decided case by case. It differs from Earned Wage Access, which is limited to salary already earned and follows set rules.

The period for which salary is calculated and paid, for example from the 1st to the last day of the month. Earned Wage Access limits follow it.

A lender’s formal approval of a loan amount and terms. It comes before disbursal and is subject to the conditions in the sanction letter.

The regulator of India’s securities markets, including mutual funds and stock exchanges.

A loan backed by an asset such as property or gold. If the loan is not repaid, the lender can recover dues from that asset, so the rate is often lower.

The final transfer of money between parties after a transaction, for example from the platform to the partner that provided the service.

Letting people use their existing work login to access a service without creating a separate password.

A way of investing a fixed amount at regular intervals, usually monthly, in a mutual fund. It builds the habit of investing and spreads your purchase price over time.

Example ₹5,000 a month for 12 months is ₹60,000 invested through 12 separate purchases.

The fixed amount a life insurance policy pays to your nominee if the insured person dies during the policy term.

The maximum amount an insurer will pay out for claims under a health or general insurance policy in a policy year.

The amount credited to your bank account after deductions such as income tax (TDS) and provident fund.

Income tax that an employer deducts from your salary and deposits with the government on your behalf.

The time you take to repay a loan. A longer tenure lowers the EMI but increases the total interest you pay.

A life insurance plan that pays a fixed sum to your family if you die during the policy term. It has no maturity benefit, so premiums are low for the cover.

An extra loan on top of an existing one, usually from the same lender and often at similar terms, for those who have repaid regularly.

A unique reference number for a payment or order. Keep it handy if you need support to look into a transaction.

Signing in with two proofs, for example a password plus an OTP, so that a stolen password alone is not enough.

The insurer’s assessment of the risk of covering you, which decides whether it accepts you and at what premium.

The shares of a mutual fund you own. Your investment amount divided by the NAV gives the number of units.

Example ₹10,000 invested when the NAV is ₹50 gives you 200 units.

A loan with no asset pledged against it, such as most personal loans. Approval depends mainly on your income and credit history.

India’s instant payment system that moves money between bank accounts using a UPI ID or QR code on your phone.

A unique number given to a bank transfer so you and your bank can trace it.

The date until which a gift card or reward can be used. After it, the value may expire.

The part of pay that depends on performance, such as bonuses or incentives, rather than being fixed each month.

Secure storage where the physical gold behind digital gold is held by the provider on the buyer’s behalf.

How much and how quickly the price of an investment moves up and down. High volatility means bigger swings in value.

The code, and sometimes a PIN, that you enter or show to redeem a gift card or voucher.

The time after buying a policy before certain claims, such as for pre-existing conditions, are covered.

A prepaid balance held with a payment provider that you can use for payments such as bills and recharges.

The maximum amount an employee can access in a salary cycle under Earned Wage Access. Employers set it, often as a share of earned salary.

The days of the salary cycle on which Earned Wage Access can be used, as configured by the employer.

The money a business needs for day-to-day operations such as stock, salaries and rent, as opposed to long-term purchases.

The international market code for gold, quoted per troy ounce, which is about 31.1 grams. Gold prices worldwide are often shown as XAU.

A digital format in which listed companies file their financial statements with regulators, making the numbers easy to read and compare.

The yearly rate of return on investments made on different dates, such as a SIP with many instalments. It gives a fairer figure than CAGR when money goes in at several points.

The standard Excel spreadsheet format. Employers often use it to share employee lists and payroll data.

A structured text file format that systems use to exchange data. Some HR and payroll systems export employee data this way.

Paying an insurance premium once a year. It is usually cheaper in total than paying monthly or quarterly.

The income an investment pays, such as interest, as a percentage of its price or value.

The total return a bond earns if it is held until maturity, with all interest paid and reinvested. Debt funds report it for their holdings.

A comparison of a figure with the same period a year earlier, which removes the effect of seasons.

The period from the start of the current year, or financial year, up to today. Returns shown as YTD cover only that part of the year.

A statistical score used to estimate how likely a company is to face financial distress, based on its accounts. Lenders use it as one input when judging credit risk.

A bank account that does not need a minimum balance. Some are meant for salary or basic banking.

An offer where the instalments add up to the product price with no visible interest. Interest is often recovered through a lost discount or fees, so compare with the cash price.

A bond that pays no regular interest. It is sold at a discount to its face value and pays the full face value at maturity.

Example A bond with a face value of ₹1,000 sold for ₹800 pays ₹1,000 at maturity.

An add-on to motor insurance that pays the full cost of replaced parts without deducting for their age or wear.