What is repayment performance?

Repayment performance refers to the total loans paid on time as stated in the loan agreement contract. Godquin (2004) defines repayment performance in terms of binary variable; based on an arbitrary definition of what le, Guttman (2007) measures repayment performance based on the degree of arrears.

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One may also ask, what are the factors affecting loan repayment?

5 factors affecting personal loan interest rates

  • Income.
  • Credit history.
  • Organisation’s reputation.
  • Loan payment history.
  • Banking relationship.
Likewise, what are the types of loan repayment? Under this plan you will pay a fixed monthly amount for a loan term of up to 10 years. Depending on the amount of the loan, the loan term may be shorter than 10 years.

Repayment Plan and Loan Term Reduction in Monthly Payment Increase in Total Interest Paid
Extended Repayment – 12 years 12% 22%

Also, what is the journal entry for a loan repayment?

When recording your loan and loan repayment in your general ledger, your business will enter a debit to the cash account to record the receipt of cash from the loan and a credit to a loan liability account for the outstanding loan.

What is the process of loan repayment?

Loan repayment is the act of settling an amount borrowed from a lender along with the applicable interest amount. Generally, the repayment method includes a scheduled process (called loan repayment schedule) in the form of equated monthly instalments or EMIs.

What is the repayment schedule?

repayment schedule in British English

(rɪˈpeɪmənt ˈʃɛdjuːl) finance. a document detailing the specific terms of a borrower’s loan, such as monthly payment, interest rate, due dates etc.

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