Define: Amortising Loan

UK Accounting Glossary

Definition: Amortising Loan


Quick Summary of Amortising Loan


An amortising loan is a loan with scheduled periodic payments that are applied to both principal and interest. An amortised loan payment first pays off the relevant interest expense for the period, after which the remainder of the payment reduces the principal.



What is the dictionary definition of Amortising Loan?

Dictionary Definition


An amortising loan is a loan in which repayments are made in more than one instalment.


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Full Definition of Amortising Loan


In banking and finance, an amortising loan is a loan where the principal of the loan is paid down over the life of the loan according to an amortization schedule, typically through equal payments. Similarly, an amortising bond is a bond that repays part of the principal along with the coupon payments.


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Amortising Loan FAQ's



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Amortising Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/amortising-loan/ (accessed: January 23, 2020).
American Psychological Association (APA):
Amortising Loan. PayrollHeaven.com. Retrieved January 23, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/amortising-loan/

Definition Sources


Definitions for Amortising Loan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th January 2019.