Definition, Meaning & Synonyms
interest-payment
noun
/ˈɪn.tər.est ˈpeɪ.mənt/
Definition
An interest payment is the amount of money paid periodically by a borrower to a lender as compensation for the use of borrowed funds.
Examples
- Homeowners make monthly interest payments on their mortgage loans.
- Businesses often budget for interest payments as part of their financing costs.
- Failure to make interest payments on time can result in penalties.
Meaning
It represents the cost of borrowing money, typically expressed as a percentage of the outstanding loan amount.
Synonyms
- interest charge
- loan fee
- finance charge
