Rateable value
It is the value arising from the relevant tables of the Ministry of Finances and is usually lower that the commercial value of the property. It is usually, the value stated in the sales contract.

Commercial value
It is the value arrising form the supply and demand of real estate properties.

Borrower
The person issuing the loan

Guarantor
The person who is providing the guarantee that  the borrower will repay all his obligations and who is responsible for covering the borrower`s obligations should he be unable to do so.

Disbursement
The rendering of the amount of the loan to the client, which is credited to his account and used to isscue a bank cheque in the name of the beneficiary (seller, contractor, civil engineer).

Bank insurance / loan coverage
The legal or financial mediums (underwriting, deposit pledging) used by the Bank in order to be protected against the loss of its capital in the event that the borrower is unable to repay the loan.

Penalty rate
The rate used for the calculation of overdue instalments.

Legal audit
This includes verification of the property`s ownership, of the correct ownership transcription and confirmation that the property is free from third party claims.

Nominal rate
The basic rate included in the agreement.
The nominal rate is increased by a 0,12% surcharge as per L. 128/75

Credit standing
The appraisal of the borrower`s ability to repay the loan.

Technical audit
Includes the appraisal of the property`s value, the identification of the deeds with the true position and condition of the real estate and the work progress of properties under construction or repair.

Loan Instalment
A payment comprising both repayment of principal and servicing of interest.