Loan repayment refers to the process of paying back borrowed money to a lender, typically in installments over a specified period. This repayment includes both the principal amount borrowed and any interest charged by the lender. The terms of repayment, such as the duration and interest rate, are usually outlined in a loan agreement.
Borrowers can choose different repayment plans, which may vary based on the type of loan, such as student loans, mortgages, or personal loans. Timely repayment is crucial to maintain a good credit score and avoid penalties, which can include additional fees or damage to one's credit history.
