India, June 1 -- Borrowing money online has its own vocabulary. If you have ever stared at a loan application screen and wondered what half the terms actually meant, you are not alone. Lenders toss around financial jargon as if everyone took the same banking course, and it can make the process feel more intimidating than it needs to be. This glossary covers the terms you are most likely to encounter, explained in plain language.

Principal, Interest Rate, and APR

The **principal** is the amount of money you actually borrow. If you take out a loan for Rs.2,00,000, that figure is your principal. Simple enough. But confusion sets in once interest enters the picture.

The **interest rate** is the percentage the lender charges you for using t...