What is repayment of a loan called?

Asked by: Prof. Garnet Adams  |  Last update: April 28, 2026
Score: 4.9/5 (7 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 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 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. repay a favor with a favor.

What is a term loan repayment?

The principal loan amount is to be repaid after the initial grace period of 1 – 2 years. Commercial banks' term loan are repayable in equal quarterly instalments whereas financial institutions' term loan are repayable in equal semi-annual instalments. Servicing burden of the loan declines over time.

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.

How Principal & Interest Are Applied In Loan Payments | Explained With Example

26 related questions found

What is loan repayment 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 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 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 loan prepayment?

Prepayment is an accounting term for the settlement of a debt or installment loan in advance of its official due date. A prepayment may be the settlement of a bill, an operating expense, or a non-operating expense that closes an account before its due date.

What is a term loan reconciliation?

Loan Reconciliation provides agents and lenders with accurate information about loan asset ownership through an automated process for validating position data. The portal eases the matching of commitment balances and transaction information.

What is a term of repayment?

The "repayment term" is the period from the starting point of credit to the final maturity of a transaction. The starting point of credit is generally the completion of the exporter's responsibility under the export contract (e.g., shipment or project completion).

What's another word for payback?

reciprocate. take retribution. return like for like. repay in the same coin.

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 the base word of repay?

Relay comes from the French relayer, which means "to change hounds on a hunt." It still has that sense of something passed in motion. You might run a relay race — each team member carries a baton part-way, then passes it on.

What is the term for paying off a loan?

Amortization – In simple terms, amortization is the process of paying off the principal and interest of a loan through installments. But amortization also refers to the process of front-loading interest payments so that the interest is paid first before the principal is fulfilled.

What is a borrow payback?

Borrow/Payback lets you transfer material between projects within your current organization. Borrow/Payback transactions apply to temporary project-to-project transfers.

What are the repayment terms for a personal loan?

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 foreclosure of a loan?

A foreclosure is simply the closing of a Home Loan by paying off the entire amount borrowed in one lump sum amount. It is part of the regular Home Loan process and allows you to pay off the borrowed amount before the EMI schedule. You can opt for a foreclosure even after having made a few EMI payments.

What is the difference between prepayment and repayment?

Repayment is the extinguishment of an the obligation to repay the loan according to the original schedule. Loans can be repaid in various ways, either in regular instalments or in one lump sum upon maturity. Prepayment is the repayment of the loan before its original maturity date.

What is an example of a repayment loan?

For example, if you borrow $100,000 for 30 years at 4.25%, your monthly payment per $1,000 borrowed would be $4.92. Multiply that factor (4.92) by 100 (100,000/1,000) to estimate your monthly payment of $492.00.

What is the term loan repayment method?

Term loans carry a fixed or variable interest rate, a monthly or quarterly repayment schedule, and a set maturity date. If the loan is used to finance an asset purchase, the useful life of that asset can impact the repayment schedule.

What are loan repayments?

Principal and interest home loan repayments consists of paying back a portion of the loan amount borrowed (principal) and an interest component. The proportion of principal and interest you pay changes over the term of your loan.

What is a word for paying back a loan?

compensate offset pay back refund reimburse restore reward.

What is a monthly loan repayment called?

1. EMIs. EMI stands for equated monthly instalments. It's a payment made by a borrower to a lender every month at a specified date. The EMI amount remains the same throughout the loan tenure.

What is the proper term for back pay?

Retroactive pay or “retro pay” is a name used by some payroll systems to describe the process by which employers reimburse employees who were either not paid or underpaid during a previous payroll cycle.