A definition of lending terms, to help you with your loan application.
| assets | Assets are economic resources that an individual owns which can be converted into cash or controlled to produce value. Assets include tangible or real items like property and cash as well as intangible assets, which are patents or trademarks. |
| business plan | A business plan is a written document that describes your current and future business. A plan needs to be persuasive, detailed and ultimately convince HCA that your business will be successful. Issues that a business plan should address include what service or problem your business will address; what you intend to do and how you intend to do it; and it demonstrates why your idea for a business would be successful and worth the risk. The plan should also include your anticipated costs and its potential for profit. |
| co-app/signer | Co-applicants and co-signers are persons other than the primary applicant, who are added to the loan application. A secondary signer’s financial history and assets are both reviewed when HCA considers approving or denying a loan. A co-applicant is also obligated to the loan repayment terms. |
| credit | Is money you “buy”. It is an agreement for money (and sometimes goods or services) that you are legally obligated to repay to the lending business, HCA. |
| credit report | Is a record of your financial history that HCA needs to process your loan. Items in the report may include proof of your ability to make on-time payments of any credit charges or other loans as well as an overall credit score. |
| collateral | Is the property or other assets you identify and pledge in order to secure a loan. |
| debt ratio | Is a measurement of your ability to take a loss without reducing your ability to pay off a debt. (A debt ratio of 50% or less is required to be favorably considered for a loan). |
| default | Is a condition where you do not meet the written terms of credit or a loan agreement. |
| eligible hca customers | Are enrolled Hopi tribal members (only) who live on the Hopi Reservation (exceptions noted in loan pages) |
| extension | Is a change to payments of a loan agreement. |
| impound | Is a term that refers to additional obligations to your loan such as insurance, legal, or summer payments. |
| insufficient funds | Is a situation when the money in your personal checking account is not enough to cover your payments. Penalty fees may be charged to you for “insufficient funds” in addition to threatening your credit history and future ability to secure other loans. |
| interest/finance charge | Is the amount of money you are charged to borrow money. |
| loan process | Is a series of steps that begin when your completed application is received at HCA and reviewed by HCA staff and/or HCA Board to decide whether your request is approved or denied. |
| loan closing | Is the final step where loan documents are signed, and loan pay-out/disbursement is received. |
| mortgage | Is an agreement between you and HCA that gives HCA conditional rights of ownership of your home until the loan is paid in full. |
| negative cash flow | Is a situation when the money you are obligated to and must pay to cover debts and expenses (e.g., rent, utilities, other loans, etc.) is greater than the money you earn. |
| principal | Is the amount or balance of a loan without any interest added. |
| repayment | Refers to the length of time and terms you have agreed to pay to return the money that you have borrowed from HCA. |
| shares | Are a part of the fees that HCA automatically charges you that represent you as a shareholder in HCA. |