self-amortizing loan

self-amortizing loan definition - business

self-amortizing loan

A debt requiring the borrower to make a series of equal periodic payments that gradually pay down the balance of the loan. Each payment is comprised of both interest and principal. Conventional mortgage loans and vehicle loans are self-amortizing.

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.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.