Fully Amortising Payment

Glossary

Banking

Fully Amortising Payment

Amortising debt facilities are those where borrowers pay a combination of interest and principal each time they make debt repayments over the life of the facility, such that at the end of the loan or bond term, the debt is repaid in full. Amortising facilities contrast with debt take on on the basis of bullet repayment schedules. In this case, only interest is repaid during the life of the debt, and the principal is all paid in a lump sum along with the final interest payment.

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