loan-amortization

Vocabulary Word

Definition

If you've ever taken a loan to buy something pricey, like a car or house, 'loan amortization' is your repayment schedule. It's a plan that lays out how much you'll pay over the loan's life, including both the original amount and any interest.

Examples in Different Contexts

In finance, 'loan amortization' refers to the process of paying off a loan through regular payments over a set period, where each payment covers both interest and principal. A financial advisor might say, 'Understanding your loan's amortization schedule can help you plan for future financial commitments.'

Practice Scenarios

Business

Scenario:

We need to reduce the outstanding loans on our company's books. Proper planning could help us better manage these debts.

Response:

We can create a detailed loan amortization plan to effectively manage and reduce our debts.

Tech

Scenario:

Our users are requesting more financial tools in the app, ones that can help them manage debts and plan repayments in a better way.

Response:

That's a great idea. Including a loan amortization tool can definitely help our users manage their debts better.