What is it called when a loan is repaid?

Asked by: Timothy Gusikowski  |  Last update: January 14, 2026
Score: 4.2/5 (49 votes)

Amortization: Loan payments by equal periodic amounts calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

What is the term for loan repayment?

Loan repayment is the act of settling an amount borrowed from a lender along with the applicable interest amount. Usually, the repayment method includes a scheduled process in the form of equated monthly instalments (EMIs).

What is another word for loan repayment?

Some common synonyms of repay are compensate, indemnify, pay, recompense, reimburse, remunerate, and satisfy. While all these words mean "to give money or its equivalent in return for something," repay stresses paying back an equivalent in kind or amount.

What is it called when a loan is paid off?

Amortization – In simple terms, amortization is the process of paying off the principal and interest of a loan through installments.

What does it mean when a loan is repaid?

Loan repayment is the process of returning a loan obtained. There are different types of repayment like – fixed rate loan, floating rate loan, balloon loan and interest only loan. Managing loan repayment is important to ensure financial stability and avoid defaults.

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19 related questions found

What is repaying a loan called?

Amortization: Loan payments by equal periodic amounts calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance.

What is debt repaid in short term?

What is Short-Term Debt? Short-term debt is defined as debt obligations that are due to be paid either within the next 12-month period or the current fiscal year of a business. Short-term debts are also referred to as current liabilities. They can be seen in the liabilities portion of a company's balance sheet.

What is a synonym for paid off loan?

verb. pay off (loans or promissory notes) synonyms: redeem. pay. give money, usually in exchange for goods or services.

What is the repayment term?

The "repayment term" is the period from the starting point of credit to the final maturity of a transaction.

What is a payoff letter called?

A payoff statement or a mortgage payoff letter will typically show the balance you must pay in order to close your loan. It may also include additional details, such as the amount of interest that will be rebated due to prepayment, the remaining payment schedule, rate of interest, and money saved for paying early.

What is the method of repayment called?

Loan repayment involves returning borrowed funds within a specific period. Different repayment methods provide flexibility. Common types include fixed monthly payments, variable payments, interest-only payments, balloon payments, and graduated repayment.

What is the base word of repayment?

You can also repay things other than money: "How will I ever repay your kindness and support?" Repay comes from the French repaier, with its "back" prefix re- and payer, "to pay." Definitions of repay. verb. pay back. synonyms: give back, refund, return.

What is the systematic repayment of a loan called?

Amortization is the systematic repayment of a debt or other financial obligation, often paid in installments. In real estate, you may hear the term mortgage amortization. Mortgage amortization means making a down payment and then making monthly payments over several years.

What is repayment loan status?

RP In Repayment A loan which is not in a condition authorizing cessation of payments (e.g., deferment or forbearance), and for which the student has begun repayment to the current holder. Note: A loan remains in an IG status until the grace period has expired and repayment begins.

What is a fixed term of repayment?

In a fixed-rate loan (also called a term loan), the interest rate stays the same for the loan's entire term. For example, you could have a loan with a 15-year amortization and a five-year term. During that five-year term, the interest rate would be “locked in.”

What are the repayment terms for personal loans?

Personal loan repayment terms typically range from two to seven years and may go as high as 12 years if you've borrowed a large amount. Ideally, you should look for the option to choose the repayment term that works best for you.

What is the remaining term of a repayment?

The remaining term refers to the number of months still outstanding on a loan. To calculate the remaining term, one simply deducts the number of payments made from the original term. The original term refers to the number of payments required to pay off the loan.

What is payment term or credit term?

Credit terms are the payment terms mentioned on the invoice at the time of buying goods. It is an agreement between the buyer and seller about the timings and payment to be made for the goods bought on credit. It is also known as payment terms.

What are the different types of repayment?

Below is a comprehensive breakdown of the three repayment types; principal & interest, interest-only, and capitalised interest, and the scenarios they are most suited to. Ultimately, choosing a repayment method that suits you and your circumstances will go a long way toward facilitating your financial success.

What is it called to repay a loan?

Repayment refers to paying back money that you have borrowed. Loan repayments cover a part of the principal, or the amount borrowed, and interest, which is what the lender charges for supplying the funds. Loan agreements specify the repayment terms, including the interest rates to be paid.

What is payoff term?

The complete repayment of a loan, including principal, interest and any other amounts due.

How do you say pay off a loan?

Get Custom Synonyms
  1. paying up.
  2. prepayment.
  3. repayment.
  4. reimbursement.
  5. overpayment.
  6. rendering.
  7. paying.
  8. tendering.

What is loan repaid?

Loan repayment is the act of paying off the borrowed money to the lender through periodic tenure, which involves both principal and interest amount through equated monthly instalment. Loan repayment is a very essential aspect for a good credit score.

Which term means to pay off a debt gradually?

To amortize is to gradually pay off a debt. A bank will help you amortize a loan so that you can make a monthly payment until you've paid back the entire amount.

What does amount repaid mean?

an amount of money that is paid back: a loan/debt/interest repayment Low interest rates are making loan repayments easier to manage.