Loan paperwork uses a lot of specific language. Here's what the common terms actually mean, in plain English.
Principal
The amount you actually borrow, before any interest is added.
Interest rate
The cost of borrowing, expressed as a percentage — this is what you pay in addition to the principal.
Loan term
The length of time you have to repay the loan in full, usually expressed in months.
Disbursement
The moment the approved funds are actually paid out to you, once your application is finalized.
Still unsure about a term?
Never guess — a member of the UCM team can walk through your specific loan offer line by line before you commit to anything.