Interest Accrual
/ˈɪn.tə.rest əˈkruː.əl/
Definitions
- (n.) The process by which interest accumulates on a principal sum over time, often used in loans and financial instruments.
The contract specified the method for interest accrual on overdue payments.
Related terms
See also
Commentary
Interest accrual is a key concept in finance law, frequently appearing in loan agreements and debt instruments; clarity in defining the accrual period and rate is essential to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.