Repayment refers to the act of paying back borrowed money or fulfilling a financial obligation. This process typically involves returning the principal amount along with any interest that may have accrued over time. Repayment can occur in various forms, such as monthly installments or a lump sum payment, depending on the terms agreed upon between the borrower and the lender, which could be a bank or a financial institution. In many cases, repayment is structured through a loan agreement, which outlines the repayment schedule and conditions. Timely repayment is crucial, as it helps maintain a good credit score and avoids penalties. Failure to repay can lead to additional fees and negatively impact the borrower's financial standing, making it harder to secure future loans.