Financial Terms, Demystified.
Clear definitions of common Indian finance terms, and how Arivo's AI thinks about them when giving you advice.
CIBIL Score
A three-digit numeric summary of your credit history, rating your ability to repay debt. In India, it ranges from 300 to 900. Higher scores get you better loan terms.
Debt-to-Income Ratio (DTI)
A personal finance measure that compares an individual's monthly debt payment to their monthly gross income.
Decision Intelligence
The application of AI and data analytics to support, augment, and automate business or personal decisions.
Emergency Fund
A highly liquid cash reserve specifically set aside for unplanned expenses or financial emergencies, such as medical bills or sudden job loss. A standard rule of thumb is 3 to 6 months of living expenses.
Employee Provident Fund (EPF)
A retirement benefit scheme available to salaried employees in India. Both the employee and the employer contribute a portion of the basic salary (usually 12%) to the fund.
Equated Monthly Installment (EMI)
A fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
Systematic Investment Plan (SIP)
A facility offered by mutual funds to investors to invest in a disciplined manner. The facility allows an investor to invest a fixed amount of money at pre-defined intervals in the selected mutual fund scheme.