Financial Terms & Definitions Dictionary

A 3-digit numerical summary (ranging from 300 to 900) representing your credit history and repayment capability. Scores of 750 or higher are considered excellent by Indian banks, qualifying you for instant loan approvals and lowest interest rates.

A fixed payment amount made by a borrower to a lender on a specific date each calendar month. Each EMI consists of both principal loan amount and accrued interest over the chosen loan tenure.

An investment method offered by mutual funds allowing individuals to invest a fixed amount of money regularly (e.g. monthly ₹500 or ₹1,000) into mutual fund schemes, benefiting from rupee cost averaging and power of compounding.

The maximum sum insured fixed by the motor insurance provider, representing the current market value of your vehicle (after applying depreciation). It is the maximum claim amount paid in case of total loss or theft.

Short for "Dematerialized Account". It is an electronic account that holds financial securities such as stocks, shares, mutual fund units, and bonds in digital format, replacing physical paper certificates.

A official form submitted annually to the Income Tax Department of India, reporting your total gross income, tax deductions under Section 80C/80D, net taxable income, and tax paid for a financial year.

The guaranteed fixed money amount that an insurance company promises to pay to the policyholder or their legal nominee upon the occurrence of the insured event (e.g. death of policyholder during term).

A metric measuring the geometric annual growth rate of an investment over a period longer than one year, smoothing out volatile year-to-year annual returns into a steady rate of compound return.