AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
![]() It is equal to the interest calculated daily since the last due date of the borrower. It is the due amount of interest which has not yet been paid. If the borrower delays the payment of a monthly installment, the overdue principal gets included in the remaining principal. Once the borrower starts repaying the EMI, the principal amount decreases month after month. ![]() ![]() It is the total amount that is borrowed from the bank. So, the loan balance also changes on a daily basis. This is because the interest on a loan left to be paid is added on a daily basis. In some cases, the outstanding loan balance can be different from the payoff amount, which is the amount to be paid to completely clear off the loan prior its due date. On the due date, if the borrower clears the monthly installment, the outstanding loan balance falls by the precise sum. Once the loan amount is credited to the borrower’s bank account, the outstanding balance usually increases everyday with accrued interest, until the due date. Simply speaking, it means the amount that is left to be repaid on any loan. Outstanding balance is the amount a borrower is obliged to pay on any debt that incurs interest. The amount that is repaid to the lender, mostly through equated monthly installments, includes the principal amount and also the accrued interest on the outstanding balance. In a typical loan agreement, the borrowed sum is returned to the bank or the non-bank lender over a fixed period.
0 Comments
Read More
Leave a Reply. |