amortized loan

amortized loan definition - business

amortized loan

A loan in which periodic payments reduce principal as well as cover any periodic interest that is charged. A home mortgage that requires equal monthly payments over a specified number of years is an example of an amortized loan. Likewise, a car loan with equal monthly payments is an amortized loan. Also called constant payment loan. Compare term loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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