Definition Of Loan Balance

Loan balance loan amount interest installment loan balance 100 000 100 000 x 6 28 859 15 outstanding loan balance 77 140 85 the same answer as given by the annuity formula applied to the remaining three installments.

Definition of loan balance. Principal balance of a loan means the outstanding balance that the borrower owes the lender. With a 20 interest rate the same balance. As the principal of the loan is paid down the borrower can use those funds again. With respect to any loan the excess of the related outstanding balance over the related loan loss reserve.

Relevant average fixed rate loan balance means in respect of a calculation period or a particular date the average outstanding daily principal balance of the relevant fixed rate loans on the first day of the relevant calculation period or the outstanding principal balance of the loans on such date as applicable as notified by the cash manager in accordance with the provisions of the. A loan balance is pretty self explanatory. An example of this is a credit card. Every loan you take out will have a loan balance until the loan is entirely paid off.

Outstanding loan balance example. After the first payment is made dave s principal note balance will be 46 850 50 000 3 150. A revolving loan commitment also called an open ended loan commitment refers to a loan assurance that guarantees the borrower can use the proceeds from the loan over and over if payments are made on time. A table showing the balance remaining to be paid on an amortized loan.

Figure 1 illustrates an equal payment loan. Regardless each payment made goes toward the interest on the loan and reduction of the total balance of the loan. A loan balance is simply the remaining amount you have left to pay on your loan. It can often be different than the payoff amount which is the amount you d need to pay today to completely pay off your loan.

If the loan purpose is refinance identifies the remaining principal loan balance of the existing note to be refinanced. Suppose a business borrows 150 000 from a lender at an interest rate of 5. Sometimes called a remaining balance table.