In context with Banking, which among the following is the nearest meaning of Amortization?
In context with Banking, which among the following is the nearest meaning of Amortization?
[A]Repayment of Principal and Interest
[B]Repayment of Principal
[C]Repayment of loan in one lump sum
[D]None of the above is a correct answer
Repayment of Principal and Interest
Amortization is the repayment of Principal and Interest components of a Loan, over a period of time. Certain category of expenses or charges are also amortized over a period of time.