Repayment of a loan is a process where the borrower must make payments to the lender within the specified period outlined in the loan agreement. This process includes repayment conditions, interest rates, and other relevant terms associated with the loan.
Loan repayments are typically divided into installments as specified in the agreement. Each installment consists of both principal and interest amounts, calculated based on the interest rate and other conditions outlined in the agreement.
Repayment of a loan is a crucial financial management aspect in daily life. Borrowers should be aware of the importance of making timely payments and should adhere to the terms and conditions agreed upon with the lender. Failure to meet the contractual obligations may have consequences on the borrower’s financial health and credit in the future.
For example, at FLO Capital and Leasing Co., Ltd., the repayment period can range from 1 year (12 installments) to a maximum of 6 years (72 installments).
