Definition of repay
- repay a loan
- repay evil for evil
- the success that repays hard work
You can repay the mortgage over 30 years.
She would rather have to repay the bank than borrow from her parents and have to repay them.
How can I ever repay your kindness?
How can I ever repay you for your kindness?
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'repay.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Repayment usually refers to the payments on a debt.
Under the terms of a loan, repayment can have different schedules and requirements. For example, a loan may be amortized over a specific period of time, requiring regular repayments. The repayments would be divided between the interest (i.e. the interest on the outstanding loan amount) and the principal repayment (i.e. the remaining amount of the periodic payment that is used to reduce the outstanding loan amount). At the same time, a loan term may be amortized over a longer period of time than the due date on the loan. In this case, a loan will require a "balloon repayment" (i.e. the amount of principal not yet repaid will be due in full at the end of the term). In either case, all payments on the loan are called repayments.
For both a borrower and a lender, the breakdown of repayments into principal and interest are very important. For a business, the interest portion of the repayment on a business loan is tax deductible. The principal is not. For a lender, the interest portion of the repayment is treated as income. The principal is not.
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