Terms
Terms summary:
The terms are the rules and obligations between the financial institution and you, the consumer.
Credit cards, mortgages, personal loans, and other financial products have terms and conditions outlined in the account agreement.
Financial product and account terms typically spell out the interest rates, fees, monthly payment amount, repayment schedule, and what happens if you default or let your account fall out of good standing.
Terms definition and meaning
The rules and obligations that a lender or creditor and borrower must follow are called the terms and conditions. If you have a financial account, like a bank account or credit card, or a loan, such as a personal loan or mortgage, you're subject to the terms outlined in the agreement. The agreement spells out the creditor’s responsibilities and obligations, and yours. Terms and conditions may include details such as interest rates, repayment terms, fees, and default provisions.
Key concept: The terms and conditions for financial accounts and products are the rules and obligations that apply to the lender or creditor and you (the consumer).
More about terms
Lenders and creditors are required by law to provide information about fees and finance charges. You can find these details in the terms and conditions spelled out in your loan agreement. Before taking out a new loan or getting a new financial product, you should review the terms and conditions so you know what to expect. If you have existing financial accounts, like credit cards or personal loans, you can review your agreement for important information about your rights and responsibilities.
Real-life examples of terms
Most financial accounts or product agreements include details such as:
Interest rate
The length of the loan
Amount of money borrowed
Repayment schedule
Monthly payment amount
Late-payment fees
Default provisions
Terms FAQs
Where do I find the interest rate on my loan?
Your interest rate and other loan terms should be spelled out in your loan agreement. This is the document you signed when you got your loan, and the lender should have given you a copy or the opportunity to download one. If you can't find your loan rate, you can contact the lender to get the details.
For credit cards, the interest rate appears in a place called the Schumer Box on your statement. This is a text box, usually somewhere on the last couple of pages, where your annual percentage rate and other key details about costs are clearly displayed.
Where do I find the fees for a loan?
You can find the fees for a loan in the loan agreement and the disclosure statement. These documents will also outline other important details about your loan.
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