Repayment Period

The repayment period is the duration over which a borrower agrees to repay a loan. It begins when the loan is disbursed and ends when the final payment is made, encompassing the total time allowed for the borrower to fulfill their debt obligation. The repayment period is critical in determining the amount of each installment, the total interest paid over the life of the loan, and the borrower’s long-term financial planning. Shorter periods result in higher monthly payments but less interest paid overall, while longer periods lower monthly payments but increase total interest.