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Finance Glossary A–Z — 203+ Indian Finance Terms

Your complete guide to personal finance terminology in India. Search any financial term — SIP, mutual funds, income tax, CIBIL score, government schemes, and more — explained in plain English with real Indian examples.

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CAGR (Compound Annual Growth Rate) Basics CAGR measures the mean annual growth rate of an investment over a specified time period longer than … Capital Gains Tax Tax Capital Gains Tax is levied on profit from selling capital assets like stocks, mutual funds, propert… Car Loan Credit A car loan is a secured loan to purchase a new or used vehicle, with the vehicle itself as collatera… Carpet Area Real Estate Carpet area is the actual usable floor area within the walls of a flat, excluding walls, balcony, te… CDSL (Central Depository Services) Stock Market CDSL is India's second securities depository, established in 1999, promoted by BSE. It holds securit… CIBIL Score Credit CIBIL Score is a three-digit credit score (300-900) assigned by TransUnion CIBIL that represents you… Circle Rate (Guideline Value) Real Estate Circle rate is the minimum property value set by state governments for calculating stamp duty and re… Claim Settlement Ratio (CSR) Insurance CSR is the percentage of claims settled by an insurance company out of the total claims received in … Collateral Credit Collateral is an asset pledged as security for a loan. If the borrower defaults, the lender can seiz… Compound Interest Basics Compound interest is interest calculated on both the initial principal and the accumulated interest … Corporate Bond Banking Corporate bonds are debt securities issued by companies to raise capital. They typically offer highe… CPI (Consumer Price Index) Economy CPI measures changes in the average price level of a basket of consumer goods and services over time… Credit Card Credit A credit card is a financial tool issued by banks that allows you to borrow money for purchases up t… Credit Report Credit A credit report is a detailed record of your credit history maintained by credit bureaus. It include… Credit Score Credit A credit score is a 3-digit number (300-900) that represents your creditworthiness based on your cre… CRR (Cash Reserve Ratio) Banking CRR is the percentage of total deposits that banks must keep as cash reserves with RBI. It is a mone… Current Account Deficit (CAD) Economy CAD occurs when a country's imports of goods, services, and transfers exceed its exports. India typi…

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IMPS (Immediate Payment Service) Banking IMPS is a 24/7 real-time interbank electronic fund transfer service offered through NPCI. It enables… Income Tax Tax Income Tax is a direct tax levied by the Government of India on individual and corporate income. Ind… Income Tax Slab Tax Tax slabs are income ranges taxed at different rates. New Regime FY 2026-27: 0-4L (nil), 4-8L (5%), … Index Fund Mutual Funds An Index Fund is a passive mutual fund that replicates the composition of a market index like Nifty … Indexation Tax Indexation adjusts the purchase price of an asset for inflation using the Cost Inflation Index (CII)… Indian Rupee (INR) Economy The Indian Rupee (₹, INR) is the official currency of India, issued by RBI. It is a partially conver… Inflation Economy Inflation is the rate at which the general level of prices for goods and services rises over time, e… Insurance Insurance Insurance is a financial contract where the insurer compensates the insured for specified losses in … Insurance Premium Insurance Premium is the amount you pay to an insurance company at regular intervals (monthly, quarterly, or a… Interest Rate Basics Interest rate is the cost of borrowing money or the return earned on deposits/investments, expressed… Intraday Trading Stock Market Intraday trading means buying and selling stocks on the same trading day before market closes (3:30 … IPO (Initial Public Offering) Stock Market An IPO is the process by which a private company offers its shares to the public for the first time … IRDAI (Insurance Regulator) Insurance IRDAI (Insurance Regulatory and Development Authority of India) is the apex body that regulates and … ITR (Income Tax Return) Tax ITR is an annual tax document filed with the Income Tax Department declaring your total income, dedu…

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Margin Trading Stock Market Margin trading is borrowing money from a broker to buy securities, using your existing securities or… Market Capitalization Stock Market Market capitalization (market cap) is the total market value of a company's outstanding shares, calc… Market Correction Stock Market A correction is a decline of 10-20% in stock prices from recent highs. It is a normal and healthy pa… Mid Cap Stocks/Funds Stock Market Mid cap companies rank 101st to 250th by market capitalization (₹5,000-20,000 crore range as per SEB… Motor Insurance (Car/Bike Insurance) Insurance Motor insurance provides financial protection against damage to your vehicle and third-party liabili… MSME (Micro, Small & Medium Enterprises) Economy MSMEs are classified by investment in plant/machinery and annual turnover. Micro: up to ₹1 Cr invest… Mudra Loan (PMMY) Government Schemes Mudra Loan under Pradhan Mantri Mudra Yojana provides collateral-free loans up to ₹10 lakh to micro/… Multi Cap / Flexi Cap Fund Mutual Funds Multi Cap funds invest across large, mid, and small cap stocks. SEBI mandates minimum 25% each in la… Mutual Fund Mutual Funds A mutual fund is a professionally managed investment vehicle that pools money from multiple investor… Mutual Fund Sahi Hai Mutual Funds 'Mutual Fund Sahi Hai' is AMFI's investor awareness campaign launched in 2017 to promote mutual fund… Mutual Fund Taxation (2026) Tax Equity funds: STCG (held <1 year) taxed at 20%, LTCG (held >1 year) taxed at 12.5% above ₹1.25 lakh …

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NACH (National Automated Clearing House) Banking NACH is a centralized clearing system operated by NPCI for bulk and repetitive electronic payment tr… NAV (Net Asset Value) Mutual Funds NAV is the per-unit market value of a mutual fund scheme. It is calculated by dividing the total val… NBFC (Non-Banking Financial Company) Banking NBFCs are financial institutions that provide banking services like loans, credit facilities, and in… NCB (No Claim Bonus) Insurance NCB is a discount on your motor or health insurance premium for every claim-free year. In motor insu… NEFT (National Electronic Funds Transfer) Banking NEFT is a nationwide electronic payment system that enables fund transfer between bank accounts in h… New Tax Regime Tax The New Tax Regime (default from FY 2023-24) offers lower tax rates but with minimal deductions. Onl… NFO (New Fund Offer) Mutual Funds NFO is the initial subscription offering for a new mutual fund scheme. During NFO period (typically … Nifty 50 Stock Market Nifty 50 is the benchmark stock market index of the National Stock Exchange (NSE) comprising 50 of I… Nomination (Nominee) Basics Nomination is the process of designating a person who will receive the proceeds of your financial as… NPCI (National Payments Corporation) Banking NPCI is an umbrella organization for all retail payment and settlement systems in India, founded by … NPS (National Pension System) Government Schemes NPS is a voluntary, government-sponsored pension scheme that invests in equity, corporate bonds, and… NRI Investment Options Banking NRIs can invest in India through NRE (repatriable) and NRO (non-repatriable) accounts. Allowed inves… NSC (National Savings Certificate) Government Schemes NSC is a fixed-income investment scheme offered by India Post with a 5-year lock-in. Current interes… NSDL (National Securities Depository) Stock Market NSDL is India's first and largest securities depository, established in 1996. It holds securities (s… NSE (National Stock Exchange) Stock Market NSE is India's largest stock exchange by trading volume, established in 1992 and headquartered in Mu…

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P/E Ratio (Price to Earnings) Stock Market P/E ratio measures how much investors are willing to pay for each rupee of a company's earnings. It … PAN Card Tax PAN (Permanent Account Number) is a unique 10-character alphanumeric identifier issued by the Income… Pension Employment Pension is a regular income received after retirement. Types in India: EPS pension (EPFO, ₹1,000+ ba… Personal Loan Credit A personal loan is an unsecured loan that can be used for any purpose — medical emergencies, wedding… PF Withdrawal Rules Employment EPF can be partially withdrawn for specific purposes: medical (any time), home purchase (5 years), e… PM Awas Yojana (PMAY) Government Schemes PMAY is a government housing scheme to provide affordable housing for EWS/LIG/MIG categories. Under … PM Jan Dhan Yojana Government Schemes Pradhan Mantri Jan Dhan Yojana is a financial inclusion program launched in 2014 to provide universa… PM Kisan Samman Nidhi Government Schemes PM-KISAN provides direct income support of ₹6,000 per year to all land-holding farmer families in In… Portfolio Basics A portfolio is the collection of all your financial investments — stocks, mutual funds, bonds, FDs, … Post Office Savings Schemes Government Schemes India Post offers 9 savings schemes: Post Office Savings Account (4%), RD (6.7%), TD (6.9-7.5%), Mon… Power of Compounding Basics The power of compounding refers to how investments grow exponentially over time when returns are rei… PPF (Public Provident Fund) Government Schemes PPF is a government-backed long-term savings scheme with a 15-year lock-in period. It offers tax-fre… Professional Tax Employment Professional tax is a state-level tax deducted from salary by employers, applicable to salaried indi… Property Tax Real Estate Property tax is an annual tax paid to the local municipal corporation or panchayat by property owner…

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RBI (Reserve Bank of India) Banking RBI is India's central bank, established in 1935 and headquartered in Mumbai. It manages monetary po… RD (Recurring Deposit) Banking A Recurring Deposit is a savings scheme where you deposit a fixed amount every month for a predeterm… RD vs FD — Which is Better? Banking RD suits people who want to save monthly with disciplined investing, similar to SIP. FD suits those … Real Return Basics Real return is the investment return adjusted for inflation. Formula: Real Return ≈ Nominal Return −… Registration Charges Real Estate Registration charges are government fees paid to legally register a property purchase in the buyer's… Regular Plan (Mutual Fund) Mutual Funds A Regular Plan is a mutual fund variant bought through a distributor, broker, or agent who earns com… Rent Agreement Real Estate A rent agreement is a legal contract between landlord and tenant specifying rent amount, tenure, dep… Rent Receipt Tax Rent receipt is a document proving rent payment to landlord, required to claim HRA exemption. For HR… Repo Rate Banking Repo Rate is the interest rate at which RBI lends short-term money to commercial banks against gover… RERA (Real Estate Regulatory Authority) Real Estate RERA is a regulatory body established under the Real Estate (Regulation and Development) Act, 2016 t… Retirement Planning Basics Retirement planning involves estimating future expenses, accounting for inflation, and building a co… Reverse Repo Rate Banking Reverse repo rate is the interest rate at which RBI borrows money from commercial banks. It is a too… Risk Appetite (Risk Tolerance) Basics Risk appetite is an investor's willingness and ability to lose some or all of their investment in ex… RTGS (Real Time Gross Settlement) Banking RTGS is a fund transfer system for high-value transactions (minimum ₹2 lakh) that processes transfer… Rule of 72 Basics The Rule of 72 is a quick mental math formula to estimate how many years it takes for an investment … RuPay Card Banking RuPay is India's indigenous card payment network launched by NPCI as an alternative to Visa and Mast… Rupee Cost Averaging Mutual Funds Rupee cost averaging is the benefit of SIP investing where you buy more units when prices are low an…

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Salary Components (CTC Breakup) Employment Salary in India typically has these components: Basic Salary (40-50% of CTC), HRA, Special Allowance… Savings Account Banking A savings account is a basic bank deposit account that earns interest (currently 2.7-7% depending on… SCSS (Senior Citizens Savings Scheme) Government Schemes SCSS is a government-backed savings scheme exclusively for senior citizens (60+ years, or 55+ for re… SEBI (Securities and Exchange Board of India) Stock Market SEBI is the regulatory authority for the securities market in India, established in 1992. It regulat… Section 24(b) — Home Loan Interest Tax Section 24(b) allows deduction of up to ₹2 lakh per year on interest paid on home loan for a self-oc… Section 54 (Capital Gains Exemption) Tax Section 54 provides exemption from LTCG tax on sale of residential property if the gains are reinves… Section 80C Tax Section 80C of the Income Tax Act allows deductions up to ₹1.5 lakh per financial year from taxable … Section 80D (Health Insurance Deduction) Tax Section 80D of Income Tax Act allows deduction for health insurance premiums and preventive health c… Section 80EEA — First-Time Home Buyer Tax Section 80EEA (expired March 2022 but relevant for existing claims) allowed additional deduction of … Section 87A Rebate Tax Section 87A provides a rebate (direct tax reduction) for taxpayers with total income up to a specifi… Sensex (BSE Sensex) Stock Market Sensex is the benchmark index of the Bombay Stock Exchange (BSE), comprising 30 of the largest, most… SGB (Sovereign Gold Bond) Gold Sovereign Gold Bonds are government securities denominated in grams of gold, issued by RBI on behalf… SGB Taxation Tax SGBs have unique tax benefits: 2.5% annual interest is taxable at slab rate. LTCG on redemption at m… Share (Stock) Stock Market A share is a unit of ownership in a company. When a company issues shares, each share represents an … Simple Interest Basics Simple interest is calculated only on the original principal amount, without compounding. Formula: S… SIP (Systematic Investment Plan) Mutual Funds SIP is a method of investing a fixed amount regularly (monthly/quarterly) in a mutual fund scheme. I… SLR (Statutory Liquidity Ratio) Banking SLR is the minimum percentage of deposits that banks must maintain in the form of liquid assets like… Small Cap Stocks/Funds Stock Market Small cap companies rank 251st and below by market capitalization (below ₹5,000 crore as per SEBI). … Sovereign Guarantee Basics A sovereign guarantee means the investment is backed by the Government of India, making it virtually… SSY (Sukanya Samriddhi Yojana) Government Schemes SSY is a government-backed savings scheme for the girl child, part of Beti Bachao Beti Padhao campai… SSY Eligibility & Rules Government Schemes SSY rules: Account for girl child below 10 years only, maximum 2 accounts (one per girl). Minimum ₹2… Stamp Duty Real Estate Stamp duty is a state-level tax paid when registering a property purchase or transfer. Rates vary by… Standard Deduction Tax Standard deduction is a flat deduction from salary/pension income, replacing transport allowance and… Standing Instruction (Auto-Debit) Banking Standing instruction is a mandate given to your bank to automatically transfer a fixed amount at reg… STCG (Short Term Capital Gains) Tax STCG applies when you sell a capital asset before the minimum holding period — 12 months for listed … Step-Up SIP (Top-Up SIP) Mutual Funds Step-Up SIP automatically increases your SIP amount at regular intervals (annually) by a fixed perce… Stock Split Stock Market A stock split is a corporate action where a company divides its existing shares into multiple shares… Stop Loss Order Stock Market A stop loss is an order placed with a broker to buy or sell a stock when it reaches a specified pric… STP (Systematic Transfer Plan) Mutual Funds STP allows you to transfer a fixed amount from one mutual fund scheme to another at regular interval… STT (Securities Transaction Tax) Tax STT is a tax levied on every purchase and sale of securities listed on Indian stock exchanges. STT r… Sum Assured (Cover Amount) Insurance Sum assured is the guaranteed amount that an insurance company promises to pay the nominee upon the … Surcharge (Income Tax) Tax Surcharge is an additional tax on income tax for high-income earners. Rates: 10% surcharge on income… SWP (Systematic Withdrawal Plan) Mutual Funds SWP allows you to withdraw a fixed amount from your mutual fund investment at regular intervals (mon…

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