Loan Jargon - a comprehensive reference of loan terminology from i Secured Loans

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Pay As You Earn - PAYE

The UK's system of collecting direct taxation that requires employers to deduct taxes from employee's pay before employers make payment.

Payment Cap

A limit on the amount a monthly repayment can increase with an variable rate loan.

Payment Default

This is where the borrower is unable, or unwilling, to meet the loan repayments. Different lenders will vary on how long they give the borrower before they start the legal proceedings to recover the loan.

Payment Holiday

A break from regular mortgage/loan repayments. This can very useful for self-employed people, or contract staff with irregular income.

Payment Protection Plan / Payment Protection Insurance

This is a type of insurance that can be taken out with a Secured Loan that will protect loan payments in the event of sickness, disability or redundancy. It's also known as life, accident, sickness and unemployment cover. It isn't compulsory to take out this type of insurance with your loan provider but it does give peace of mind.

Policyholder

A person covered by an insurance policy

Preferential Creditor

A creditor who is entitled to payment before other creditors

Premium

The amount paid for a contract of insurance or assurance

Prime Rate

The lowest rate that banks offer on loans

Private Debt

This is money owed by individuals and businesses rather than by the government

A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z, Full List