repayment rate
Học thuậtThân thiện
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
- the amount of money paid out per unit time