Important terms and definitions to know about your Windmill microloan

Here's a comprehensive glossary of terms used in communications with Windmill Microlending that you may find helpful:

  • Account Closed: This error indicates that the bank account on file has been closed. To resolve this, provide a new account number promptly to the Loan Management Team.
  • Amortization Schedule: A table detailing the payments of a loan over time, including interest and principal amounts for each scheduled payment.
  • Arrears: Missed or late payments due to non-sufficient funds, account closure, or other issues.
  • Bank Account Number: A unique series of numbers identifying a bank account, used for fund transfers and payments.
  • External Collections: Debt collections agencies that recover unpaid debts. Windmill may engage external collections if multiple payments are missed.
  • Credit History: A record of your credit accounts and payments, affecting your creditworthiness.
  • Credit Score: A numerical representation of credit risk to lenders, based on credit history.
  • Delinquent: Late or overdue on a payment, with consequences depending on the type and duration of delinquency.
  • Direct Deposit Form: Documentation confirming bank account details for pre-authorized payments.
  • Disbursement: Transfer of loan funds to a bank account, increasing the outstanding principal and interest calculation.
  • Equifax: A major credit reporting agency in Canada, providing credit history reports.
  • Installment Loan: A loan repaid in fixed installments over time.
  • Interest: The cost of borrowing money, expressed as a percentage.
  • Loan Documents Package: Documentation including borrower and lender responsibilities, interest rate, and cost of borrowing.
  • NSF (Non-Sufficient Funds): An error when a payment fails due to insufficient funds in the account.
  • Online Payment: Deposits made online using banking software.
  • Pay in Full Early: Repaying the entire loan amount before the scheduled maturity date, without penalties.
  • PAP (Pre-Authorized Payments): Withdrawals from a bank account for monthly payments.
  • Prime Rate: Interest rate at which banks lend to customers with good credit.
  • Principal: Original amount borrowed, excluding interest.
  • Principal + Interest: Total amount borrowed plus interest, paid in scheduled installments.
  • Repaid: Loan status indicating full repayment.
  • Restructure: Modification of loan terms due to inability to adhere to original terms.
  • Variable Interest Rate: Interest rate that fluctuates based on benchmark rates.
  • Void Cheque: A cancelled cheque used for setting up direct deposits.

For more details or explanations, consult your loan documents or visit Windmill Microlending's website.

Windmill is the author of this solution article.

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