MONTHLY INSTALMENT Meaning and
Definition
-
A monthly instalment refers to a fixed amount of money that is paid back by a borrower to a lender on a regular monthly basis as part of a loan or credit agreement. It represents a portion of the total debt owed by the borrower and comprises both the principal amount borrowed and the interest charged by the lender.
When individuals or businesses borrow money, they may not have the means to repay the entire loan all at once. Instead, the loan is divided into smaller, more manageable portions called instalments. These instalments are spread out over a predetermined period, typically monthly, until the debt is fully repaid.
The monthly instalment includes both the repayment of the original loan amount and the interest charged by the lender for the privilege of borrowing the money. The interest rate is usually specified in the loan agreement and can either be fixed or variable depending on the terms.
Monthly instalments are a common feature of various financial products, including mortgages, auto loans, personal loans, and credit cards. By dividing the loan into regular payments, the borrower can make the debt more affordable and easier to manage over time.
Calculating the monthly instalment involves considering factors such as loan amount, interest rate, loan duration, and type of interest (fixed or variable). Additionally, other fees or charges may be included in the instalment amount, such as insurance or service fees, depending on the loan agreement.
Overall, monthly instalments provide a flexible and structured repayment schedule, allowing individuals and businesses to access funds while fulfilling their financial obligations in a systematic manner.
Common Misspellings for MONTHLY INSTALMENT
- nonthly instalment
- konthly instalment
- jonthly instalment
- minthly instalment
- mknthly instalment
- mlnthly instalment
- mpnthly instalment
- m0nthly instalment
- m9nthly instalment
- mobthly instalment
- momthly instalment
- mojthly instalment
- mohthly instalment
- monrhly instalment
- monfhly instalment
- monghly instalment
- monyhly instalment
- mon6hly instalment
- mon5hly instalment
- montgly instalment
Etymology of MONTHLY INSTALMENT
The word "monthly installment" is composed of two parts:
1. Monthly: The term "monthly" originated from the Middle English word "monethly" which was derived from the Old English word "monaþlīce". The root of this word is "monaþ", Old English for "month", which ultimately traces back to the Proto-Germanic word "mēnôth-".
2. Installment: The word "installment" has its roots in the Latin word "installare" which means "to establish or to set up". In English, "install" originally meant to "settle in a position or state".
The spelling of "installment" with one "l" is commonly used in American English, while the variant "instalment" with two "l's" is more frequent in British English.
