unearned interest

unearned interest definition - business

unearned interest

Prepaid interest received but not treated as income by a lender. For example, installment loans often result in unearned interest that must be returned to the borrower if the loan is repaid early.

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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