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.
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.
| 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.