An amortized loan is a loan that is repaid through regular payments including both principal and interest over a specified period.
A standardized time measurement convention used in financial computations, where each month is assumed to have 30 days and the year 360 days.
A fully amortized loan is one in which payments of both interest and principal are made regularly according to a set schedule, which are sufficient to liquidate the loan over its term; it is essentially self-liquidating.
Loan amortization refers to the reduction of debt by scheduled, regular payments of principal and interest sufficient to repay the loan at maturity. It is a fundamental concept in financial planning, allowing borrowers to understand how their loan is repaid over time.
