A late payment penalty corresponds to an increase applied by the bank in the event of late repayment of a monthly loan payment.
In the context of a personal loan or consumer credit, the late payment penalty cannot exceed 8% of the monthly payment. As part of a home loan, the lender can increase the monthly payment of late credit and also increase by 3% the interest rate on late payments.
Other definitions of the lexicon starting with the letter P:
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