Amortize Loan

An amortizing loan is a type of loan that requires monthly payments, with a portion of the payments each going towards the principal and interest payments. Amortization spreads out the loan repayment into multiple fixed payments over the duration of the loan.
Under this type of repayment structure, the borrower makes the same payment throughout the loan term. The first portion of the payment goes toward interest and the remaining amount is paid against the outstanding loan principal.