Definition

Noun: The speed or frequency at which money that was borrowed is paid back, typically expressed as an amount per unit of time (e.g., per month or per year). It is a measure of the rate of debt reduction.

Usage

The term "repayment rate" is used in financial contexts to describe and compare the pace of debt settlement. It is a key metric for lenders and borrowers to assess loan performance. - The bank was pleased with the high repayment rate on the new loan product. - A faster repayment rate reduces the total interest paid over the life of the loan.

Examples

• The borrower's consistent repayment rate of $500 per month ensured the loan would be cleared ahead of schedule.
• Lenders often offer lower interest rates to customers with a proven history of a strong repayment rate.
• Analyzing the average repayment rate helps in forecasting the company's future cash flow from receivables.

Advanced Usage

• "to accelerate the repayment rate": to increase the speed at which a debt is paid down.
  • Using the annual bonus to accelerate the repayment rate on the mortgage is a smart financial move.
• "repayment rate analysis": the examination of how quickly debts are being settled.
  • The credit department conducts a quarterly repayment rate analysis on its portfolio.

Variants and Related Words

• Repayment (n): the action of paying back a loan.
  • The loan agreement specifies the terms of repayment.
• Repay (v): to pay back money that is owed.
  • He promised to repay the debt within a year.

Synonyms

• Debt service rate: The rate at which debt obligations are met.
• Amortization rate: The rate at which a loan's principal is paid down (often used in technical/accounting contexts).

Related Phrases

• Rate of repayment: A phrase with identical meaning to "repayment rate," sometimes used for stylistic variation.
  • The rate of repayment on student loans has become a topic of national debate.

Noun

1. the amount of money paid out per unit time