repayment plan

Definition

Plan setup and agreed upon between a borrower and creditor that outlines how the money will be paid back. The repayment plan clearly indicates the original loan amount, how much goes to the principle and how much goes to interest. It may also include the due date for each payment and identified any other fees related to the loan. The repayment plan must be agreed upon before the loan can be dispersed. Repayment plans may be altered at the lender's discretion.

Use repayment plan in a sentence

The repayment plan was a very good one for me and I agreed with what it said and everything like that.

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You should try to come up with a good repayment plan that both parties can fully agree with in the future.

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When agreeing to take the loan from Gemma, Alan accepted a repayment plan that outlined how he would pay the $500 back in three years.

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income sensitive repayment (ISR) biweekly mortgage