Capital repayment
A payment that reduces the amount originally borrowed, as distinct from a payment that only covers interest or charges.
Related terms
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Interest-only repayment period
A temporary period when scheduled payments cover interest rather than reducing the underlying capital balance.
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Principal
The original amount borrowed or the capital balance outstanding, excluding interest and most charges.
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Loan repayment holiday
A temporary agreed pause in scheduled repayments. Interest may continue to accrue, so the total amount payable can still increase.
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