Interest Payment
/ˈɪntrɪst ˈpeɪmənt/
Definitions
- (n.) A payment made by a borrower to a lender as compensation for the use of borrowed money, typically calculated as a percentage of the principal amount.
The borrower made the monthly interest payment on the loan.
- (n.) The periodic amount paid to a bondholder representing the earnings on the bond investment.
The bond issuer sent out the quarterly interest payment to all investors.
Forms
- interest payment
- interest payments
Related terms
See also
Commentary
Interest payments are fundamental to credit and debt arrangements; precision in calculating and documenting these payments is critical 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.